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Pakistan : GOVERNMENT OF PAKISTAN looks to extend statutory deadline by another 4 YEARS

June 23, 2014

The government of Pakistan is looking to extend the statutory deadline by another four years to retire the Rs2.6trn debt obtained for budget financing.

This step was taken in the guise of giving more autonomy to the State Bank of Pakistan under a condition levied by International Monetary Fund (IMF) as part of its $6.7bn three-year bailout package.

It is expected that the governemnt is to miss the June 30 deadline set to give full autonomy to the central bank. Additionally, the bill that has been proposed to amend the SBP law is contrary to what the government has agreed with the IMF.

To go ahead with the plan, the Pakistan Muslim League - Nawaz (PML-N) government needs a waiver from the Washington-based lender, as the bill introduced to amend the SBP Act of 1956 is yet to be cleared by the standing committees of the National Assembly and the Senate.

It will be second waiver as the government is set to miss the deadline of June 30 to appoint a financial adviser to privatise 26 percent shares of Pakistan International Airlines.

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Source: TendersInfo (India)

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