After getting the mini budget passed, the government has also succeeded in getting the crucial State Bank of Pakistan (Amendment) Bill through the Senate. Despite the arrangements made already by the government to get the task assigned by the IMF done, the Senate Chairman had to delay the proceedings to ensure the presence of required Coalition Senators. This showed the govt had to work harder this time than in the past With the passage of the two bills,the government will be able to seek the $1billion IMF tranche and continue with the Fund’s programme. This will enable it to seek loans from foreign banks and raise funds through international instruments to fulfill its immediate financial needs.
Total autonomy to the State Bank including immunity to the SBP governor, deputy governor and directors of the board from accountability through NAB and FIA, is likely to generate problems. The government will no more be able to mobilise the funds needed in times of crisis from the State Bank. As pointed out during the Senate debate, while the bill had yet to become a law, the State Bank had issued a notification, requiring commercial banks to consider the possibility of default on government loans while making their loan allocations. It is maintained that the new law will lead to the loss of the federal government’s financial control affecting PEC, while bringing foreign policy and relationship with neighbours under strain. It is also claimed that Pakistan’s nuclear assets and their funding and defence expenditure will henceforth be under the IMF’s scrutiny.
The way the government managed to get the State Bank Bill passed underlines the sad state of the Opposition which failed to block it despite its numerical edge in Senate. At least eight opposition members including the Leader of the Opposition in the Upper House, Yousuf Raza Gilani, were absent when the crucial bill was passed resulting to both sides getting locked in a tie at 43-43,and the bill getting through by the Senate Chairman’s casting vote. This is likely to further embitter relations between the PML(N) and PPP. This also exposes the PML(N) leaders’ claims of a number of the ruling coalition’s parliamentarians showing willingness to join hands with the party. This raises the question if the Opposition would be able to get a no-confidence vote passed against the PM in present circumstances.
