The International Monetary Fund Executive Board is set to hold a meeting to consider Pakistan’s request for completing its Sixth Review and disburse one billion dollars under the Extended Fund Facility (EFF).
The meeting was scheduled to be held on January 12 to assess the recommendation to disburse $1 billion of Pakistan’s $6 billion. However, the meeting was postponed at Pakistan’s request as the required legislation had not been passed. Instead, the executive board of the global financial body considered Nepal’s request at the appointed date.
The government has fulfilled one of the prior conditions for the release of the loan with the approval of the mini-budget in the parliament. The second main condition with passage of the controversial State Bank of Pakistan (SBP) Amendment Bill 2021 is still pending approval.
The National Assembly has passed the SBP Amendment Bill, however, the Senate still needs to approve the bill. The government needs to gain the approval from the Senate within 10 days. If the Senate makes some major amendments to the proposed legislation, then the government will have to convene a joint parliament session to get the bill passed.
