IMF expected to approve new loan by September: FinMin Aurangzeb

ISLAMABAD: Finance Minister Muhammad Aurangzeb has announced that the International Monetary Fund (IMF) Executive Board is expected to approve a new programme for Pakistan in September 2024, following ongoing discussions that are progressing positively.

This update was shared during a Senate Standing Committee on Finance meeting, chaired by Salim Mandviwalla. Previously, Aurangzeb had suggested that the IMF would approve the Extended Fund Facility (EFF) for Pakistan by the end of August 2024, but the approval is now anticipated for September.

During the meeting, the committee resolved that the Finance Ministry should resubmit the Deposit Protection Corporation Amendment Bill 2024 to parliament, despite the finance minister’s request to pass it as a crucial IMF benchmark for October 2024.

Senator Farooq H. Naek questioned the legality of the bill, arguing that the caretaker government, whichh introduced it, did not have the authority to legislate. He called for the current government to reintroduce the bill, accusing the Law Ministry of misleading the committee on this matter.

Aurangzeb reiterated that the Deposit Protection Corporation Amendment Bill 2024 is a key requirement set by the IMF, with a legislative deadline in October 2024. Mandviwalla clarified that the bill, introduced in January 2024 by the previous caretaker government, has not yet been passed. The committee ultimately decided that the bill should be reintroduced in the National Assembly.

In addition to this, the committee reviewed issues related to money laundering and currency reforms. Senators Shibli Faraz and Mohsin Aziz opposed the decision to hold a closed session on money laundering and Federal Board of Revenue (FBR) officers.

The meeting included top officials from the Finance Ministry, State Bank, and FBR, who provided briefings on various topics, including efforts to prevent money laundering disguised as solar panel imports.

The committee also discussed the development of new currency notes, with State Bank Governor Jameel Ahmed noting that the lifespan of plastic notes is under evaluation, and that the prerequisites for their introduction would be finalised by December 2024.

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