ISLAMABAD: Finance Minister Muhammad Aurangzeb announced on Wednesday that the International Monetary Fund (IMF) is now expected to approve Pakistan’s $7 billion bailout package in September. This comes after an earlier expectation that the IMF board would give its nod by the end of August, contingent on the confirmation of around $12 billion in debt rollovers from China, Saudi Arabia, and the UAE. So far, only a $1 billion extension from the UAE has materialized, with the remaining $11 billion still pending.
While addressing the Senate Standing Committee on Finance, the finance minister did not delve into specifics but confirmed that discussions with the IMF were moving in a positive direction. “We are in constant contact with the IMF,” he assured.
The committee meeting, chaired by PPP Senator Saleem Mandviwalla, saw some heated moments as PTI senators Mohsin Aziz and Shibli Faraz protested against an in-camera briefing on issues related to money laundering through solar panel imports and the suspension of FBR officers. The senators argued that the topic had already been extensively discussed and did not warrant another closed-door session.
The controversy stems from an alleged scam involving Rs73 billion in trade-based money laundering through solar panel imports, previously uncovered by the FBR. Despite formal cases against three entities in Peshawar, the State Bank of Pakistan (SBP) has been reluctant to discuss the matter openly. Nonetheless, Mr. Mandviwalla agreed to the SBP’s request for a confidential briefing, which later highlighted the central bank’s measures to combat money laundering disguised as solar panel imports.
Newly appointed FBR Chairman Rashid Mahmood Langrial also provided an in-camera update on the FBR officials designated as Officers on Special Duty (OSD) over the past two years.
The meeting also touched upon the Deposit Protection Corporation Amendment Bill 2024, a requirement set by the IMF with a deadline of October 2024 for its passage. Senator Farooq H. Naek criticized the bill as unconstitutional, arguing that it was introduced during a caretaker government period, which is uncommon outside of Bangladesh. The committee ultimately agreed that the bill should be reintroduced in the National Assembly on Monday.
Further discussions at the meeting included the development of new currency notes, with SBP Governor Jameel Ahmad reporting that plastic notes are under consideration. Senator Shahzaib Durrani supported this move, while the SBP governor noted that plastic currency would be tested for public acceptance before being issued.
Senator Mohsin Aziz also raised concerns over the Rs5,000 note, calling it a source of corruption and arguing that its value has significantly decreased over time. The central bank governor assured the committee that new currency notes would include enhanced security features.
The meeting concluded with the resolution of issues related to over 800 consignments of light aliphatic hydrocarbon solvent, with the Department of Explosives ordering the release of the tankers after payment of a penalty. Additionally, the transition of the Export Finance Scheme (EFS) to EXIM Bank is progressing smoothly, with completion expected before the fiscal year 2027-28.
