“The Fund expressed its support for the Monetary Policy Committee’s decision to raise the discount rate by 250 basis points on 8 April and…”
“Well, the fact that the MPC held an unscheduled meeting a day before the vote of no confidence on 9 April, I mean if they had waited till a day after the vote wouldn’t the rupee dollar parity have strengthened in the rupee’s favour as the vote of no confidence removed political uncertainty as a factor and so this policy tool could have been more targeted if you know what I mean.”
“Well, that was a judgement call!”
“Hmmm, I must admit I supported the rate rise but see what I find suspicious was the IMF supporting the decision to raise the discount rate and this is the first time in my memory that the Fund has actually appreciated a policy rate rise during a stalled mandatory review and…”
“Not in your memory indeed! Is that a U-turn on your part or is it the onset of dementia?”
“Hey in multilaterals a press statement…right, right, it was in the form of a text message, but it is critical to get an OK from headquarters and…”
“Headquarters like in Bani Gala or…or Jaati Umra…or…or Bilawal House or Pindi or…”
“I suppose so — that’s where all decisions are taken and God forbid if someone at headquarters is not quite up to the task at hand.”
“But why would anyone’s job be on the line just because the Fund supported the decision to raise the rate?”
“Because incoming coalition was unlikely to continue with appointees of the outgoing government and the Fund support was the last straw as you said…”
“Can’t imagine the PPP or the Maulanas being too pushed about who heads the SBP but I know some accountants who have an allergy greater than yours to mulberry…”
“What about confectioners?”
“Don’t know but I do know for a fact that IMF statement or no IMF statement most of those holding positions best look for another job.”
Copyright Business Recorder, 2022
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