Pakistan's upper house of parliament passes law for central bank's autonomy

Pakistan's upper house of parliament put the seal on Friday on a law backed by the International Monetary Fund (IMF) to give the central bank more independence in decision-making.

The new legislation, passed by 43-42 votes and with immediate effect, was among the most important of conditions by the IMF for revival of a stalled $6 billion funding. The lower house had earlier this month also passed the law.

The bill gives the bank independent powers to control price stability and monetary policy, plus guaranteed tenure for its governor.

It also stops the government borrowing from the bank. The IMF review board is next meeting on Feb. 2 to discuss a due tranche of $1 billion, which was delayed twice at Pakistan's request pending the legislation.