Pak's search for an IMF bailout will cost the finance minister, central bank governor, and senior executive their jobs
ISLAMABAD: Pakistan's Attempts To Secure IMF Financial Support, The Finance Minister, Central Bank Governor And Top Taxpayer Have Cost Their Jobs Because Global Lender Has Induced Islamabad To Take More Steps To Ensure Fiscal Discipline.
The Government Appointed Saturday Night Reza Baqir - A Pakistani Economist Working For The International Monetary Fund (IMF) - As Governor Of The State Bank Of Pakistan (SBP). His Appointment Came A Day After Tariq Bajwa Resigned From The Position Of Governor Of The Central Bank Of Pakistan.
The Government Also Appointed Ahmed Mujtaba Memon To The Chief Function Of Chairman Of The Federal President Of The Revenue (FBR), Who Also Became A Vacant On Friday After The Removal Of Jahanzeb Khan, President Of The Tax Collection Authority.
The Most Important Appointments Are Only A Few Weeks After Finance Minister Asad Umar Was Asked To Resign Amidst Critical Rescue Negotiations With The IMF, Suggesting That The Government Wants To Overhaul Its Financial Team Amid Weakening Growth Rates And Rising Inflation.
Last Month Premier Imran Khan Dr. Abdul Hafeez Sheikh As Financial Advisor Instead Of Umar, Because Inflation Was Highest In Six Years.
Head Of The IMF Mission To Pakistan Ernesto Rigo Is Currently In Islamabad As The Country Hopes To Conclude An Agreement With The Global Lender For A Three-year Bailout Package Totaling Approximately $ 6.5 Billion, The Express Tribune Reported.
The IMF Officials Have Been In The City For The Last Five Days And There Is Still No Agreement On The Macroeconomic Framework, As The Sources In The Ministry Of Finance Quoted. The Ministry Of Finance And IMF Team Predictions About Every Major Economic Indicator Varied, They Said.
The IMF Urges Pakistan To Embrace A More Flexible Rupee Policy To End The Repeated Tree And Bust Cycles, With Many Analysts Claiming That The Local Currency Is Overvalued. The Government Is Also Frustrated By The Low Tax Collection During Its First Year Of Office, With The Disappointing Figures That The Prime Minister Threatened: S Promises To Build A Welfare State For The Poor, Reports Geo News.
The SBP In March Reduced Economic Growth Expectations. The Economy Forecast Would Rise 3.5 To 4 Percent In The 12 Months To The End Of June, More Than A Government Target Of 6.2 Percent. The IMF Paints A More Bleak Picture, Predicting Growth Of 2.9 Percent In 2019 And 2.8 Percent Next Year, The Report Said.
Meanwhile, Bajwa, The Departing Governor Of The SBP, Has Said That He Has Resigned To Avoid A Confrontation With The Government.
In Response To A Question On A Private News On Saturday Why He Stopped Before He Had Completed His Three-year Term, Bajwa Said A Confrontation Between The Government And The Central Bank Was Not In The Country's Interest.
So, I Preferred To Submit My Resignation Instead Of Approaching A Court, He Was Quoted By The Dawn Newspaper.
Bajwa Said That The Interests Of The Country Were More Important Than His Work. On Friday, Bajwa Was Asked To Resign While In Islamabad For Conversations With The IMF.
Last Month, Umar, A Good Employee Of Prime Minister Khan, Was Removed As Minister Of Finance, Apparently Because He Had Not Closed Negotiations With The IMF For A New Rescue Plan.
IMF-directeur-generaal Christine Lagard Ontmoette Last Month Premier Khan In Beijing. Na Haar Ontmoeting, Zei Lagard, Zeiden Zij En Khan" Vooruitzichten Voor Een Alomvattend Beleidspakket En Internationale Financiële Steun Om De Economie Van Pakistan Te Helpen Stabiliseren, En Ook De Noodzaak Om Het Bestuur Te Versterken En De Armen Te Beschermen."
Pakistan Has So Far Received A Total Of $ 9.1 Billion In Financial Aid Packages From Friendly Countries Such As China, Saudi Arabia And The UAE During The Current Fiscal Year.