Dr Reza Baqir responds to criticism during NA panel hearing

State Bank of Pakistan (SBP) Governor Dr Reza Baqir responded to criticism directed at him by opposition parties over his previous affiliation with the International Monetary Fund (IMF), saying that a number of central bank governors have served in global institutions.

Dr Baqir, appointed the SBP governor in May 2019, has over 18 years of experience with the IMF, including as the Head of the IMF's Office in Egypt and Senior Resident Representative and other assignments.

With Pakistan currently in negotiation with the Washington-based lender over the $6-billion Extended Fund Facility, the opposition has criticised the SBP's role.

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However, briefing the Standing Committee on Finance on Monday, Dr Baqir questioned if it was a crime to work for an international organisation.

“Throughout our history, a number of central bank governors have been affiliated with the IMF and other international organisations,” said Baqir in response during a heated session.

“I do not have dual nationality nor permanent residency of another country. I was born in Lahore, and went on to study in international universities abroad,” he said, adding that a lot of fake news is generated on media and social media on these issues.

Dr Baqir further said the impression suggesting decisions pertaining to the SBP are taken amid pressure from the IMF is incorrect. He said that the IMF has voiced their disagreements regarding some reforms.

He added that it is wrong to assume that “the SBP is being sold to the IMF”.

While briefing the senators, Dr Raza Baqir said now that the SBP Amendment Bill draft has come out, everyone can see that all powers are with the government.

The SBP Amendment Bill, 2021 alongside the Finance (Supplementary) Bill are prior conditions needed for the sixth review of the $6 billion EFF to get cleared by IMF executive board.

Completion of the review would make available SDR 750 million (about $1,059 million), bringing total disbursements under the EFF to about $3,027 million.