Govt proposes absolute autonomy for SBP

[RealNapster]

autonomous = aka free from any audit

If you think autonomous just means free from any audit, well, what can I say to you than ??

 

[xyxmt]

This will be an absolute disaster for Pakistan, yet another autonomous division of govt open for foreign investors. May Allah give hidayat to our leaders

If you think autonomous just means free from any audit, well, what can I say to you than ??

Election commission is autonomous open for audit and openly defying govt and favoring Nawaz Sharif...but its open for audit so we can lick it

 

[Sugarcane]

NAB, courts etc have been controlled by governments for decades. Current government has made them "independent" but it will take time to see affects as these institutions are still filled with friends of PMLN and PPP

I don't believe that baboos siting in bureaucracy are honest and capable to be given autonomy. It will be like giving gun in hands of monkey. Giving autonomy will do nothing when it's corrupt to core. Do you deny that courts, NAB, ECP are constitutionally independent? If despite this autonomy they are controlled by governments then how SBP is going to be any different? We will just add another clown in circus where crooks will be using their powers and leverage to get share in loot.

 

[niaz]

I found the following two definitions of ‘Autonomy’

• The right of self-government by a state or an organization.
• The capacity of an agent to act in accordance with objective morality rather than under the influence of desires.

Thus a completely autonomous state simply implies that a country/province/city or an organization can act what is best for the entity in their opinion without being driven by an outside influence.

State Bank of Pakistan was inaugurated on July 1, 1948, by the Quaid-e- Azam through the ‘State Bank of Pakistan Order 1948. Its main duty was to "regulate the issue of banknotes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage".
Full text. At: https://www.sbp.org.pk/about/sbpact/sbpact1.htm

Its scope was further widened in 1956 under the State Bank of Pakistan Act 1956 which made the SBP the central bank of the country and mandated the SBP to regulate the monetary & credit system of Pakistan.

It was originally a ‘Joint Stock Company’ with large industrialists such as Valika as its shareholders. However, under the Bank Nationalization Act of1974; ZA Bhutto nationalized SBP as well and now Pakistan Gov’t is the sole owner of SBP. Thus no foreign or even a Pakistani can hold SBP shares.

SBP is already supposed to be autonomous:

“Under financial sector reforms, the State Bank of Pakistan was granted autonomy in February 1994. On 21st January 1997, this autonomy was further strengthened by issuing three Amendment Ordinances (which were approved by the Parliament in May 1997) namely, State Bank of Pakistan Act, 1956,”

Full text at https://www.sbp.org.pk/about/core_functions/index.htm

As usual, the 1994 & 1997 acts were only in “Theory” what is needed is to put the theory into practice.

I am disappointed to read the opinions that consider granting autonomy a disaster. If autonomy was such a bad thing then obviously our parliamentarians were stupid to grant autonomy to SBP in 1994.

 

[Bouncer]

I am disappointed to read the opinions that consider granting autonomy a disaster.

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.

 

[ziaulislam]

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

if this happens, then this will be the last IMF program as PMLN PPPP practice of currency manipulation and steriod injection growth will be over..
we will finally become a country rather then a banana state like Zimbabwe, nigeria and Afghanistan where rupee is printed as much as we want


this one step alone will be greater then all the achievement of PMLN-PPPP put together, rather all the shit caused by PDM

 

[niaz]

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.

Honorable Sit,

I agree with you that we have seen extraordinary judicial activism, but SBP is already supposed to be autonomous. What is being proposed is essentially what it should have been since 1997.

 

[Verve]

SBP will still be answerable to the Parliament. There is no such thing as absolute autonomy ...

 

[CriticalThought]

Autonomy of central bank is one of the pillars of modern capitalism. But under the traitorous claws of BKT, I have major reservations about this. Today, at least in theory, the government can order the central bank to print money and pay salaries of employees in cash - pay attention to the word theoretically. With Pakistan in an engineered financial crisis, a crisis manufactured by the West, I would not want to appoint a Western puppet as a guardian to this capability. The traitor Imran Khan is looking for any excuse to divert money away from the nuclear program. With money printing out of their hands, they will sit back and just say we don't have the money. The traitors Zardari and Nawaz have prepared this convenient base for the traitor Imran Khan to sell the country to his foreign masters.

 

[AZADPAKISTAN2009]

Not fully on board with idea

 

[Kabira]

if this happens, then this will be the last IMF program as PMLN PPPP practice of currency manipulation and steriod injection growth will be over..
we will finally become a country rather then a banana state like Zimbabwe, nigeria and Afghanistan where rupee is printed as much as we want


this one step alone will be greater then all the achievement of PMLN-PPPP put together, rather all the shit caused by PDM

IMF condition, please don't give credit to PTI lol

Pakistan economy policy is basically being run by IMF since 2018. I agree this is great step forward to get rid of boom and bust cycles.

 

[Patriot forever]

IMF condition, please don't give credit to PTI lol

Pakistan economy policy is basically being run by IMF since 2018. I agree this is great step forward to get rid of boom and bust cycles.

PTI has been following this policy for quiet a while now even before joining IMF programme, it's just legislation that is being done. Well you do jump to criticize pti for fiscal discipline why not give them the credit for taking abuse to put country in the right direction? They are the ones paying the political cost for these policies.
Remember what Plmn did, they let the taps open and massively interfered and artificially manipulated with monetary policy that led the country to bankruptcy.

Always remember economy is a cycle fiscal political injection leads to inflation, in order o curtail the inflation rupee was artificially manipulated to flood the market with subsidized imports to increase spending, that lead to unsustainable CAD and lead us to bankruptcy and hardest program yet under IMF. That spending/consumption based GDP growth evaporated and there is nothing to show against those inflated numbers apart from white elephant projects.

Do you understand what Plmn did? That's practically selling your country.

 

[ARMalik]

aka, , the state bank will now work for IMF and would be 'free' from govt ' interference '


everyone has a boss...!

And this pretty much has given me more than enough proof that this IK and his goon are working for IMF and foreign agents. SBP independence means IT IS NOT CONTROLLED BY PEOPLE OF PAKISTAN. SO EFFECTIVELY, THE PEOPLE OF PAKISTAN AND THEIR FINANCES WILL BE CONTROLLED BY FOREIGNERS !!

I have NO DOUBT left now that this IK guy is working for foreign powers !

 

[IceCold]

Pakistan me aajati Hy fatway aana shuru ho jaty.

Favorite pasttime of Pakistanis.

 

[Bouncer]

Honorable Sit,

I agree with you that we have seen extraordinary judicial activism, but SBP is already supposed to be autonomous. What is being proposed is essentially what it should have been since 1997.

Definitely SBP should be autonomous, Sir . I was merely commenting on the possible reasons as to why people are paranoid about the word "autonomous".

And I wasn't alluding to judicial activism when I said "less than stellar record"--I meant the sorry state of justice they dispense--the open rotten maggot infested puss filled wound that our judiciary is.