In a recent briefing to the Senate Standing Committee on Economic Affairs, officials from the State Bank of Pakistan (SBP) clarified that foreign exchange received as loans from the International Monetary Fund (IMF) is exclusively utilized to manage the country’s balance of payments.

The committee was informed on Monday that these funds are not allocated to the federal government but are directly deposited with the central bank. The SBP uses these funds to handle import bills, interest rate payments, and balance of payments.

During the meeting, concerns were raised about the Economic Affairs Division’s failure to provide detailed reports on the IMF program since 2018. Committee Chairman Senator Saifullah Abro highlighted that this information had been requested in previous meetings, yet no details had been shared over the past four sessions.

Additionally, committee members expressed apprehensions regarding the management of foreign loans received through the SBP and the utilization of foreign funds. The meeting also included a briefing on the financial health of the central bank, revealing that both the financial and current accounts were in deficit.

The committee members requested more detailed information on these issues for the next meeting.