Islamabad: The National Assembly’s (NA) standing committee on Monday (January 10) approved the ‘State Bank of Pakistan (SBP) Amendment Bill 2021’, news sources reported. The latest changes were suggested by the members of the committee related to the appointment of the SBP governor, and the answerability to the parliament.
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According to sources, treasury members stated that the bill aims to provide stability to the government’s fiscal policies as well as budgetary autonomy. However, if the administration deems it essential, the bill will be amendable with a mere two-thirds majority in parliament. Members of the opposition proposed three amendments to the selection of the SBP governor. The three suggested modifications are as follows:
- A bar on the appointment of dual nationals as SBP governor
- A two-year restriction on the employment of a governor in an institution that he/she may have engaged in negotiations with
- Answerability of the governor and senior staff of the SBP management answerable to the parliament
Read: Govt passes bill granting fiscal autonomy to SBP
According to the proposed bill, the government will not be permitted to borrow directly from the central bank, but rather from the private sector, for fiscal adjustments. In the same way, a board of directors will be appointed to govern and regulate the central bank and its top management. It is vital to highlight that the bill was tabled in parliament in accordance with the government’s agreements with the International Monetary Fund (IMF) to empower the central bank with autonomy consistent with international practices.