What the IMF Is Asking for (As of August 19, 2025)
1. Remove the Finance Secretary from SBP’s Board
- The IMF recommends removing the finance secretary entirely from the State Bank of Pakistan (SBP) board—this follows a previous 2022 reform which stripped the voting rights, leaving the secretary on the board as a non-voting member.
2. Fill Deputy Governor Vacancies Immediately
- The SBP currently has three sanctioned deputy governor positions, but only one—Saleem Ullah (Deputy Governor for Finance, Inclusion, and Innovation)—is filled.
- The IMF urges prompt appointment to the two vacant posts to enable structured, collective decision-making at the SBP.
3. Publish Removal Reasons for Key Officials
- The fund wants Pakistan to publish reasons for the removal of SBP governors, deputy governors, non-executive directors, and Monetary Policy Committee members—aiming to enhance accountability and transparency.
4. Enforce Filling of Vacancies Within 30 Days
- Under existing law, vacancies in key positions must be filled within 30 days, but this has not been followed.
- The IMF insists these appointments should never remain unfilled for prolonged periods.
5. Amend Banking Companies Ordinance 1962
- The IMF has asked to revise Section 40 of this ordinance, which currently allows the federal government to command SBP to inspect any commercial bank.
- The suggested amendment aims to curtail direct government inspection orders, further safeguarding SBP’s autonomy.
6. Timeline & Next Stage
- The IMF review mission is expected in the third week of September 2025, for talks related to the upcoming $1 billion tranche under the ongoing 37-month EFF program
SOURCE: The Express Tribune
