On Thursday, International Monetary Fund (IMF ) director for Middle East and Central Asia, Jihad Azour proposed to extend the term of the central bank governor from three to five years to strengthen the independence of the institution, which had been questioned in the past because of repeated political interference in monetary and exchange rate policies.
He said, “We think this change will help in the future to prevent leakages in policies.”
Further, he said that the government had agreed to bring necessary legislation to protect the independence of the State Bank of Pakistan (SBP) under the IMF’s $6 billion bailout package, aimed at shoring up fragile public finances and speeding up a slowing economy.
The IMF official said, “The government has agreed on a timeline of end December for new legislations on central bank and to give autonomy on (SBP) budget, operational autonomy, and autonomy on objectives.”
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