ISLAMABAD, NOV 22: Adviser to the Prime Minister on Finance Shaukat Tarin said on Monday that the government would ensure that the legislation pertaining to the State Bank of Pakistan’s (SBP’s) autonomy was passed, as has been agreed with the International Monetary Fund (IMF).

The legislation will give unprecedented autonomy to the State Bank of Pakistan to target inflation, rather than economic growth.

Pakistan is required to pass the legislation under the programme agreed with the IMF in July 2019, wherein the Fund had approved a 39-month $6bn arrangement for the country under its Extended Fund Facility (EFF) to support Islamabad’s economic reform programme. In March this year, the government had reached an agreement with the Fund on granting autonomy to the central bank, which was also approved by the IMF board.

Tarin’s statement in this regard came hours after the IMF announced that a staff-level agreement had been reached with the government that would help revive the $6-billion funding programme stalled since April this year.