Foreign exchange received as loans from the International Monetary Fund (IMF) is exclusively used to manage balance of payments, State Bank of Pakistan (SBP) officials informed the Senate Standing Committee on Economic Affairs on Monday.
The committee was informed that these funds do not go to the federal government but are directly deposited with the central bank, which utilizes them for managing import bills, interest rate payments, and balance of payments.
One of the major issues raised was the failure of the Economic Affairs Division to provide detailed reports on the IMF program since 2018. Committee chairman, Senator Saifullah Abro said this information had been requested in previous meetings but no details had been shared over the past four sessions.
Committee members also expressed concerns about the management of foreign loans received via SBP and the use of foreign funds.
The meeting was also briefed about the financial health of the central bank and how both the financial and current accounts were in deficit. The committee members sought more clarity in this regard at the next meeting.