Is the Comradeship Over?

By Aamir Syed: They joined Imran Khan’s economic team together. Both had faced same allegations and same hurdles. They were dubbed as IMF’s people. And they defended each other at every forum. But now, it seems, comradeship is over.

Newspaper Express Tribune reported: “the Ministry of Finance (MoF) has said that State Bank of Pakistan (SBP) “facilitated speculative behaviour” of commercial banks last year which caused a loss of Rs6.5 billion to the national kitty in just first five months on account of additional borrowing cost.

The central bank being the regulator of the banking sector is responsible to ensure that the banks do not exploit their customers, including the largest client – the federal government.

In addition to putting Rs6.5 billion additional burden on the national exchequer from January to May 2019 period, the federal government’s non-tax revenues also took a hit due to the same reason, revealed a letter that the MoF had sent to the SBP Board in May last year.”

The MoF had proposed to the SBP Board to take up this matter and order an investigation and also urged the central bank to review and improve its internal governance by reshuffling SBP officers who were serving in the same position for a considerable period.The letter had been sent during the period when Younus Dagha was the federal finance secretary.

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