ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that the International Monetary Fund (IMF) Executive Board is expected to approve a new programme for Pakistan in September 2024 and maintained that talks with the Fund are moving in the right direction.
He was explaining to the Senate Standing Committee on Finance meeting presided over by Salim Mandviwalla as earlier Aurangzeb had stated that the IMF Executive Board would approve EFF for Pakistan by the end of August 2024.
Aurangzeb indicated that the IMF Executive Board is expected to approve the programme in September and expressed optimism that negotiations are progressing positively.
IMF Executive Board meeting agenda issued; Pakistan not included
The committee also decided that the Finance Ministry should resubmit the Deposit Protection Corporation Bill to the parliament despite the finance minister’s request to consider it as it was one of the IMF benchmarks for October.
The committee members, especially, Farooq H Naek pointed out that the law approved by the caretaker government that does not have the prerogative of legislation. The committee members also complained the Law Ministry representative was misguiding the committee on this issue.
The Law Ministry’s official said that the bill in the agenda was prepared by the caretaker government and it was adopted by this government and it has also happened in the past as well. Senator Farooq H Naek said that caretaker government had no power to legislate as this law was made by the caretaker set up the present government should present it again in the house. Mohsin Aziz supported Farooq H Naek’s position.
The finance minister said that “Deposit Protection Corporation Amendment Bill 2024” is part of the IMF benchmarks and Fund has given time till October 2024 for legislation.
The committee chairman said that the bill was introduced by the caretaker government in January and committee did not pass it yet.
Meanwhile, Senator Shibli Faraz and Mohsin Aziz protested the decision for converting the committee meeting in-camera on the agenda of money laundering and FBR officers.
The meeting also included secretary finance, the governor of the State Bank, and the chairman of the FBR. The chairman of the FBR gave an in-camera briefing on the officers appointed as OSD over the past two years. Additionally, an in-camera session addressed measures by State Bank officials to prevent money laundering disguised as solar panel imports.
The committee intended to review the Deposit Protection Corporation Amendment Bill 2024, which is part of the benchmarks set by the IMF. Finance Minister Aurangzeb stated that the IMF has set a deadline of October 2024 for the legislation. However, Committee member Farooq Naek criticised the bill as unconstitutional, asserting that it was introduced during the caretaker period and accusing the Ministry of Law and Justice of misleading the committee.
Mandviwalla clarified that the bill was introduced by the previous caretaker government in January and has not yet been passed. The committee debated whether the newly-elected government should reintroduce the bill. Senator Farooq Hamid Naek condemned the caretaker setup as unconstitutional, noting its rare use outside of Bangladesh. After consensus of all the committee members, the committee directed that the bill be reintroduced again in the National Assembly on Monday.
The committee also reviewed issues regarding digital and plastic currency.
State Bank Governor Jameel Ahmed reported that new currency notes are being developed and that the life span of plastic notes is under evaluation.
It was briefed that state bank will internally finalise the prerequisites of introducing new currency notes by December. Shahzaib Durrani supported the introduction of plastic currency, while Governor Ahmed stated that plastic currency will be tested and issued based on public acceptance.
Senator Mohsin Aziz criticised the 5,000-rupee note as a source of corruption, claiming it is hoarded in unaccounted spaces. The discussion highlighted that although the note was initially valuable, its worth has diminished over time. Governor State Bank assured that new currency notes will include enhanced security features.
Copyright Business Recorder, 2024
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