Govt proposes absolute autonomy for SBP

[El Sidd]

Why can't IMF and World Bank print Pakistani passport? or direct army operations

ironically the government asks 2 3rd majority to even pick up waste but this was possible without political numbers?

Anyhow one can always take solace from the fact that Sadaqat and Amanat destroyed us.

 

[Invicta]

The federal government has agreed to grant absolute autonomy to the State Bank of Pakistan (SBP), whereas the federal cabinet will take up the SBP Amendment Bill for approval in its meeting today.

According to a report by the Express Tribune, the central bank’s primary objective under the SBP Amendment Bill, 2021, would be to ensure domestic price stability as it would be free from the responsibilities of supporting economic growth and providing budgetary loans to revive the stalled International Monetary Fund (IMF) programme.

The bill states that supporting economic policies has been declared as “tertiary objective” of the central bank, while 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 provided with immunity from NAB and the FIA.

Similarly in another major proposal, the Monetary and Fiscal Policies Coordination Board has been proposed to be abolished, with a view to ending “risk of undue political influence over the SBP’s monetary policy”, according to the finance ministry. The

The bill also proposes the abolition of SBP’s powers to run quasi fiscal operations.

Commenting on the development, Bank of Punjab President and CEO Zafar Masud said, “Some of the clauses are an absolute must. IMF or no IMF.”

Taking to Twitter, he said “This should be done for all PSEs”.

Govt proposes absolute autonomy for SBP

The federal government has agreed to grant absolute autonomy to the State Bank of Pakistan (SBP), whereas the federal cabinet will take up the SBP Amendment Bill for approval in its meeting today.

profit.pakistantoday.com.pk

Great move and a long time in the making, cuts the supply lines of PLMN and PPP, deprives them of using SBP as a tool to manipulate and fudge economical statistics. This should be made permanent with inclusion of a clause such as 75% of parliamentary majority is required to change this law. Otherwise this will be the first law PLMN and PPP will target as soon they get power.

 

[AgNoStiC MuSliM]

Sir, I think the other autonomous bodies in Pakistan have a less than stellar record. Officially our judiciary is independent and completely autonomous and look where that got us.

There are structural issues there. The rot starts with the bars and the lawyers community that then feeds into the judiciary.

Also remember that we have decades of judges and lawyers that were affiliated with the PMLN & PPP. Just because the PTI came into power does not mean it can wipe out all of them from the system. Reforms must start with the lawyers and bars and eventually competent people will feed into the judicial system.

The SBP would not be in as dire of a situation as the judiciary because people like Reza Baqir can recruit and recommend competent people going forward, whereas the judiciary already has a process under which the Chief Justices etc are essentially already pre-determined for several years because of seniority, retirement age etc.

 

[maithil]

Absolute autonomy of central banks is a myth. No country allows that. Neither will Pakistan. Makes a good talking point though.

 

[Bilal Khan (Quwa)]

For what it's worth, the IMF isn't even at the point where it wants to economically torture us yet. Our tax to GDP ratio is still quite low; our cash transactions are vastly under-monitored; and the bulk of our state and public resources are not only underutilized, but we don't want to utilize them.

In other words, the IMF can't sap us dry yet because we don't even have a tree. @SQ8

The critical part aren't the basic fiscal and monetary corrections, but whether we have enough autonomy to set-up a competitive economic development plan. This is where the IMF is going to be a real problem if we still owe them or their backers money. In practical terms, we'd like to use those new tax proceeds to fund our STEM R&D and IP creation across medicine, industry, etc, the IMF might stop that.

 

[Invicta]

The critical part aren't the basic fiscal and monetary corrections, but whether we have enough autonomy to set-up a competitive economic development plan. This is where the IMF is going to be a real problem if we still owe them or their backers money. In practical terms, we'd like to use those new tax proceeds to fund our STEM R&D and IP creation across medicine, industry, etc, the IMF might stop that.

I believe that will only be the case if said country was having issues maintaining their debt payments. In Pakistan's case this is true, as Pakistan government have been borrowing to payoff existing debt, if played correctly this issue can be negated, though that demands consistent economic policy that utilises current industry and efficient tax collection with very low cash transactions.

Pakistan needs an economic development plan that helps her not only maintain its current debt but with a surplus that can be used to payoff when the debt matures. This will limit IMF in what they demand. All depends on who is in power and how corrupt they are.

 

[Vanamali]

Is there any example that making an institution independent proven good in Pakistan?

Courts, NAB, ECP comes to mind given absolute autonomy and they are pain in a$$

Army....

 

[Abdulrehman 2978]

Army....

Thanks Allah armed forces are independent. Or else maryam would be using them against government