Islamabad, Sep 23: The State Bank of Pakistan (SBP) told the Senate Standing Committee on Economic Affairs on Monday that the sole purpose of foreign cash obtained as loans from the International Monetary Fund (IMF) is to control the balance of payments.
The committee was advised that these money are deposited directly with the central bank, which uses them to handle import bills, interest rate payments, and balance of payments. Instead of going to the federal government.
The fact that the Economic Affairs Division has not produced comprehensive reports on the IMF program since 2018 was one of the main concerns brought up. Senator Saifullah Abro, the chairman of the committee, stated that while this information had been asked for in earlier meetings, no specifics had been provided in the last four sessions.
Members of the committee also voiced concerns regarding the utilization of foreign cash and the administration of foreign loans obtained through SBP. The central bank’s financial situation and the fact that the current and financial accounts were both in deficit were also brought up during the briefing. At the following meeting, the committee members asked for further clarification on this matter.
