‘Gaya’ Pakistan?

[Nasr]

It's not the truth, these people want people like Nawaz and dar to be able to utilise the state Bank of Pakistan for political purposes and to do retarded things like artificially fix our state currency wasting billions in debt and interest payments

nawaz and dar will die a dog's death for betraying Islam. The enemy is not only within, but also externally. And the worst evil that is external threat to Pakistan, is IMF/WB mafia.

Pakistanis must constructively urge the government to ban any and all IMF/WB dicta't to SBP.

Those among us are fools to think IMF/WB wouldn't meddle. I would say to my fellow countrymen to stand with the Government of Pakistan and kill this IMF/WB mafia's control over SBP.

We are Muslim First, and by that right, Pakistanis. If we do not fight against this, working constructively with the Government of Pakistan, we are traitors to not only Pakistan, but more importantly, Islam.

 

[muhammadhafeezmalik]

Yaar the state Bank needs to be independent so it can make impartial fiscal policy decisions in the best interests of the country not effected by whichever government is in power

They need to be able to hire financial professionals from across the world to make sane implementable fiscal policy

They need to show the world that Pakistan is a reliable and secure place to invest not risky due to a corrupt political system happy to fix results through the use of the state Bank

The state Bank then needs to reveal ACTUAL DATA so we can then accurately amend policy in response and grow our economy

The state Bank NEEDS to be independent and work with the government as two independent branches of the state


But you noonie toons and jiyalas are a curse upon Pakistan that want to trap it for your worthless dynasties

Who will regulate SBP if it takes fiscal policy decisions against the interests of the country??

Can anyone or OP also share the said draft of legislation. Without seeing the original draft of legislation, this debate is one-sided and biased. May be government present it in parliament only to be failed or heavily amended so that we can say NO to IMF. We never know. So please share the original draft of the said legislation.

Cabinet endorses amendments to SBP Act | The Express Tribune

The federal cabinet on Tuesday approved sweeping powers for the central bank in haste to meet a condition of the International Monetary Fund (IMF), but it neither set an explicit inflation target nor ensured accountability.

tribune.com.pk

 

[hussain0216]

nawaz and dar will die a dog's death for betraying Islam. The enemy is not only within, but also externally. And the worst evil that is external threat to Pakistan, is IMF/WB mafia.

Pakistanis must constructively urge the government to ban any and all IMF/WB dicta't to SBP.

Those among us are fools to think IMF/WB wouldn't meddle. I would say to my fellow countrymen to stand with the Government of Pakistan and kill this IMF/WB mafia's control over SBP.

We are Muslim First, and by that right, Pakistanis. If we do not fight against this, working constructively with the Government of Pakistan, we are traitors to not only Pakistan, but more importantly, Islam.

You are making the IMF into a enemy it is not

It's like your saying the IMF came to us forced us to be corrupt crooks and forced us to take massive amounts of debt that we then had to payback

Evil IMF



No brother,we got ourselves into a situation that we now need to extract ourselves from
Because we owe debt we need fiscal austerity for the next 5 to 10 years thanks to the Pmln and PPP even the generals in the past but going forward we can't act like ostriches with our heads in the sand

Who will regulate SBP if it takes fiscal policy decisions against the interests of the country??

Who regulates them in other countries?

 

[Enigma SIG]

Who will regulate SBP if it takes fiscal policy decisions against the interests of the country??

Cabinet endorses amendments to SBP Act | The Express Tribune

The federal cabinet on Tuesday approved sweeping powers for the central bank in haste to meet a condition of the International Monetary Fund (IMF), but it neither set an explicit inflation target nor ensured accountability.

tribune.com.pk

Turkish lira plunges to near record low after Erdogan sacks central bank chief (yahoo.com)

This is what happens when politicians interfere in money matters against the interest of the country.

 

[BRAVO_]

in my opinion which is actually based upon the statement of Nobel laureate Joseph Stiglitz, the 2007 financial crisis hit countries with more independent central banks (Europe and the US) way, way profoundly than those with more subservient institutions (China, and Brazil) so in time of crises ((in pakistan's case we always in crises) this independent policy will crush paksitan

 

[muhammadhafeezmalik]

Yaar the state Bank needs to be independent so it can make impartial fiscal policy decisions in the best interests of the country not effected by whichever government is in power

They need to be able to hire financial professionals from across the world to make sane implementable fiscal policy

They need to show the world that Pakistan is a reliable and secure place to invest not risky due to a corrupt political system happy to fix results through the use of the state Bank

The state Bank then needs to reveal ACTUAL DATA so we can then accurately amend policy in response and grow our economy

The state Bank NEEDS to be independent and work with the government as two independent branches of the state


But you noonie toons and jiyalas are a curse upon Pakistan that want to trap it for your worthless dynasties

This is not about DATA only,
- All the debt of Federal government will be now liability of SBP, government will not devise a policy how to pay the debt, SBP will. Currently, the Chinese currency swaps, foreign central bank deposits and IMF loans for balance of payments are part of the SBP liabilities, which understate the total public debt of the federal government.

- Instead of the federal government, the remuneration, terms and conditions of the service of the governor and deputy governors will be determined by the SBP board.
The governor salary will be determined by keeping in mind the prevalent salaries in the financial sector of Pakistan, which runs into hundreds of millions of rupees in some cases.

- Section 39 of the new bill does not ensure accountability. It says, “The governor shall submit annual report before the parliament regarding the achievement of the bank’s objectives, conduct of monetary policy, state of the economy and the financial system. In addition, the parliament may require any senior official to attend at such additional times as may be required. BUT The National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) cannot investigate the SBP governor, deputy governors, its executives and board and committee members. Former officials have also been given immunity from NAB and FIA. ”

- In future, the federal government cannot make legislation without consulting the SBP. “The bank shall be consulted ex ante on any proposed legislative act related to the Bank,” states Section 46B sub-section 8.

 

[H!TchHiker]

How does it matter ? Who controls the interest rate in so called Islamic republic

 

[muhammadhafeezmalik]

Turkish lira plunges to near record low after Erdogan sacks central bank chief (yahoo.com)

This is what happens when politicians interfere in money matters against the interest of the country.

Accountability is missing in this proposed legislation, politician are answerable to courts, NAB FIA and to the public in elections. BUT SBP governor, deputy governors, its executives and board and committee members. Former officials have also been given immunity from NAB and FIA.

 

[muhammadhafeezmalik]

How does it matter ? Who controls the interest rate in so called Islamic republic

The central bank is currently responsible for supporting economic growth and stability of the monetary and financial system now SBP would independently set monetary policy without taking an advice from government.

 

[H!TchHiker]

The central bank is currently responsible for supporting economic growth and stability of the monetary and financial system now SBP would independently set monetary policy without taking an advice from government.

If state has no issue ...why do we object. Interest based economy in pakistan is bound to fail anyhow ..

 

[Type59]

Good idea.

Makes me smile when people want politicians to run bank.

Pti should be applauded if this succeeds. Long run it will benefit Pakistan, ofcourse there will be problems, but positives outweigh negatives.

 

[Indus Pakistan]

This may well be our 1857 moment.

What was this moment? When sepoys from what is Pakistan loyally went to crush the rebellion in Hindustan? In doing so they paid back in kind to the Hindustani's who had few years before helped the British to destroy the Sikh Empire on the cis Indus tract.

The case for an independent central bank is both political and economic

What is wrong with having a independent central bank. Would it be safer in hands opf Nawaz, Ten Cent Zardari? Is that what this writer is implying? The whole idea of a independent central bank is that decisions are made by professional experts driven by economic indicators.

Not by the political whims of Zardari, Nawaz or Maulan Fazlur Rehman.

 

[peagle]

Latest example is Egypt. Our new viceroy is also imported from there.

Have you checked the projected size of the Egyptian economy, please search and you'll find it is expected to be a major economy in the coming decades, I can only assume the reforms introduced there by Pakistans states banks governor will have positive long term effects.

Egypt is a much smaller country but will continue to have a larger economy, with reforms we can change that future.
Without reforms, we will still be crying in 2050. Let's not forget, reforms are not set in stone and can be reversed. Isn't it better to do course corrections rather than crying all the time.

 

[Patriot forever]

When idots are having a galore by some catchy headline. The reason we are with the IMF is due to not having an independent central bank and running again and again into a balance of payment crisis. I hate the IMF also because of strict policies, this very thing is the key to avoid IMF in the future. People like Dar and Mifta are the reason we are with the IMF right now.
As far as growth is concerned, consumption led growth is like hot air, I will state a fact for easy understanding, the growth was less than the CAD which stood at -ve 6% GDP in 2018. It's like buying a car on loan and bragging look I am so wealthy, when one is not even capable of paying the interest on loan let alone the principal.

There are junkies in our society whose intellect is limited to having an another shot of narcotics to avoid the withdrawal symptoms. When they become rabid in search for the next shot that's when one sees such articles

 

[ziaulislam]

It's not the truth, these people want people like Nawaz and dar to be able to utilise the state Bank of Pakistan for political purposes and to do retarded things like artificially fix our state currency wasting billions in debt and interest payments

Basically he is saying of this happens how will govt print fake notes(i.e do relentless borrowing from state bank)

From reports in the press, the State Bank of Pakistan Amendment Bill, 2021 seems to be an Enfield rifle, greased with pig fat that the nation will be asked to chew on. If we do not act to stop its passage by parliament, by whatever it takes, then we can say farewell to a free and sovereign Pakistan. This may well be our 1857 moment.

The State Bank is the financial agent of the government and is the banker to all banks. As the banks’ banker, it regulates and intervenes in the market for money (rupee and foreign currencies). As the government’s bank, it holds public funds and lends to (or withholds money from) the government, when it is needed.

It is the government’s credit card. Just as a parent takes away the credit card of a teenager who misuses it, the IMF has finally succeeded (after some three decades of persistent efforts) in persuading the government to surrender its credit card. To whom? Not to the people of Pakistan, to whom it belongs in a democracy. But, following the by now well-established practices of servitude, to a State Bank management, nominally appointed by government but substantively by the IMF.

The case for an independent central bank is both political and economic. The central problem of politics is the establishment of a just government, under law that answers and caters to all the people. Unlike England and America, we have failed at this. Yet, we tend to mimic their practices, without realising that we don’t possess the institutions that enable their success in those countries. There, the centuries-old customs of the people, embodied in common law, were finally established by beheading a king who held himself above the law (Charles I, 1649) and fighting a war to stop paying taxes to a foreign power (the American Revolution, 1775-1783).

In Pakistan, instead of the rule of law, the law of the ruler prevails. Moreover, having stepped into the shoes of the British, the ruling oligarchy regards the people as inferior aliens, and all politics is a catfight over the diminishing spoils of tyranny. Democracy in Pakistan is lawless rule, over the people, by an oligarchy, for its bankers. This is the fundamentally different reality which can make what is good for England or America, disastrous for Pakistan.

In England and America, those for and those against central bank independence can both assume that there is an infrastructure of law and parliamentary oversight that restrains both the central bank and the government from acting against the public interest. The debate on central bank independence is therefore a debate on whether, additionally, the public interest is better served by parliamentary or by governmental oversight of the central bank. This isn’t the case in Pakistan, where if the government does not oversee the State Bank, then no law or authority can hold it accountable.

Our political problem is that we haven’t been able to make any laws that can restrain the powerful. Members of parliament, instead of looking after the people they ostensibly represent, seek to enrich themselves and emigrate abroad. The pickings are so good that they have recently passed a law allowing foreign (dual) citizens to represent the people of Pakistan. Like the rest of government, the commanding heights of finance are all occupied by individuals who aren’t accountable to the people and will be on a plane out of the country at the sound of a loud firecracker.

In this situation, the fact that representatives of the people must periodically seek votes to get elected is the thin string by which hangs the semblance of tolerable government. The amendment proposes to slice this string further by placing the State Bank beyond effective accountability to the people. This would be a giant political step backwards.

What about its economics? The economic case is made in two steps. First, the case is made that the government, by forcing the central bank to finance excessive budget deficits, creates inflation (which undermines monetary stability and sustainable growth). Second, it is argued that this problem can be solved by granting independence to the central bank. This is bad economics as well.

While excessive government spending does contribute to inflation, two things are true in Pakistan that aren’t in England or America. One, it is interest payments on domestic and external debt that are the largest and fastest growing component of government expenditure. They will not be contained by making the State Bank independent (nor, by raising interest rates). Two, it isn’t excessive government demand for goods and services that is causing inflation. It is being caused by rising import prices, shortages of production capacity and supplies, and by monopolies and oligopolies in key markets. Will an independent State Bank lead to lower sugar prices or electricity tariffs? It is the wrong solution, albeit for the right problem.

It isn’t just bad politics and wrong economics to make the State Bank autonomous of law and government, it is also a national security risk. The government does waste money; but from time to time, it must also incur unavoidable expenditures of the highest priority. In times of peace, does it help that the government’s external reserves and revenue receipts are held by an institution that monitors the government’s financial transactions for foreigners, by explicit agreement? And if war is thrust upon us, would we be able to defend the country better when the entire top financial management of the country would have flown out to their actual homes abroad at the first sound of gunfire? Think about this.

The problems that central bank independence seeks to address must be solved on a priority basis. But both logic and experience demonstrate conclusively that the generic, one-size-fits-all solution proposed — central bank independence — will not work. We all know it won’t work. It would only formalise in law our quasi-colonial debt-servitude, which is the real problem. If the government doesn’t withdraw the legislation, then common citizens must fight to stop it or say farewell to Pakistan. It really is now, or never.

(The writer has served as a senior economist with the World Bank and as the chief economist of the government of Pakistan)

BR-ePaper | Mar 25, 2021 | Page Opinion and Editorial Page 10

epaper.brecorder.com

Bravo @muhammadhafeezmalik for having courage to say the truth, ma-sha-Allah!

But you guys dont need to worry
Trust me PMLN-PPPP will back track on this next time in 2023 then print limitless notes in 2028 for election spending and this will be followeb by us kneeling begging arabs again with IMF loans afterwards

Punjab has and will always vote for maryum nawaz..

When idots are having a galore by some catchy headline. The reason we are with the IMF is due to not having an independent central bank and running again and again into a balance of payment crisis. I hate the IMF also because of strict policies, this very thing is the key to avoid IMF in the future. People like Dar and Mifta are the reason we are with the IMF right now.
As far as growth is concerned, consumption led growth is like hot air, I will state a fact for easy understanding, the growth was less than the CAD which stood at -ve 6% GDP in 2018. It's like buying a car on loan and bragging look I am so wealthy, when one is not even capable of paying the interest on loan let alone the principal.

There are junkies in our society whose intellect is limited to having an another shot of narcotics to avoid the withdrawal symptoms. When they become rabid in search for the next shot that's when one sees such articles

Noone is idiot everyone knows this..

But they like it..

Just like my cousin always ask for money and we have to give to him

Pakistan and pakistanis have begger gene in their genetics as we arent responsible like benglis or indians ..