SBP made accountable before Parliament


SBP to control price hike.

Mohammad Arshad

The government has approved promulgation of three major laws to strengthen and empower the state organs to ensure economic stability.

In this regard, the Federal Cabinet approved three laws to empower the State Bank of Pakistan.

As per laws, the SBP will control the price hike as well as will be accountable before the parliament. Pakistan Observer carried out this news report in its March 9 edition.

While addressing a news conference Federal Finance Minister Hafeez Shaikh along with key members of government’s economic and media managing team Federal Minister of Industries and Production Hammad Azhar and Advisor to Prime Minister Imran Khan for Institutional Reforms and Austerity Ishrat Hussain said that these laws had been approved to strengthen the state institutions and to ensure economic stability.

He said that Federal cabinet had approved the State Bank Amendment Bill 2021 to empower SBP; under this law SBP would be answerable before the parliament and would also play its due role in the controlling the price hike in the country.

The finance minister said public listed companies and state institutions were currently functioning under separate laws; fiscal board was being dissolved so now not the ministers but board of governors would make decisions about the appointment of Chief Executive Officers of the companies.

Some economic sectors have been granted tax exemptions, he said that tune of tax exemptions would be reduced as well as a uniform tax system would be introduced.

No sectors would be given extra favours’ he said adding that some amendments in the tax act had also been approved.

The finance minister said amendments have been made in tax laws to reduce the burden on the middle-class.

Speaking on privatisation, Shaikh said it was a tough nut to crack as it requires investors to step up. Due to coronavirus, privatisation has been delayed by 6-9 months, he said.

The minister, vowing the country would soon see results of privatisation, said the program would be expanded.

There are some companies that had to be privatised, however, it was delayed due to coronavirus.

Meanwhile, taking over the presser, Dr Hussain said the government was working on bringing reforms in the state institutions.