The Autonomy of State Bank: A Fresh Look at Central Bank Independence - Webinar Brief 29

The secondary objective is the stability of the financial system of the country and the tertiary objective is supporting the economic policies of the Government of Pakistan without undermining the primary and secondary objectives. [...] In the current provisions of the amended bill, there should be no direct borrowing by the government from the State Bank of Pakistan, and all the concessional loans or the concessional lending programs that the government designs would not be funded or subsidized by the State Bank of Pakistan. [...] The finance secretary will be kicked out of the board and abolition of the fiscal and monetary board is also one of the provisions of the amended bill. [...] Appointing authority is the President of Pakistan and the board of directors will be chosen by the Ministry of Finance from the list of individuals given by the State Bank of Pakistan. [...] The average inflation for Pakistan in the year 2020 is 10.8% while the average inflation in most of the countries of the Asia-Pacific region is around 3- 4% so in Pakistan inflation is around three times higher than the other countries in the region.