a new boss in the making
An independent SBP is not suitable for Pakistan as it is a horrible trap for us and now SBP will report directly to the IMF and FATF as an independent super boss. Sadly, we run Pakistan on a daily basis and we are left at the mercy of the IMF and FATF as Pakistan goes through multiple external and external crises. The economic crises, starting with the debt service and internal debts are increasing day by day and the government is changing the engines but not the economic vehicle which must be totally reconditioned because it is unable to stop the collapse of the economy. economy. Circular debt is at its peak and China is upset over non-payment of its electricity dues according to the deal. Line losses and theft of electricity should not be an excuse for not making payments to power plants. It looks like Chinese companies and others will sooner or later turn to international courts, which could still be a big diplomatic problem. An independent SBP will also raise objections and the government will not be able to pay in local currency because there is already a budget deficit.
Electricity theft and line losses are administrative matters and must be addressed by the government. We are in trouble today because of the lack of vision in our policies and the government is not grappling with the multiple aspects of fiscal policy. It conducts all policies based on the guidelines given by the IMF without protecting the national interest and the well-being of ordinary people.
The IMF wants to push us into bankruptcy by devaluing our currency and allowing the inflation rate to keep prices up, forcing the public to be on the streets. We must not forget that the West is very upset with our nuclear assets and will continue to hit us, pushing us into bankruptcy. It is strange to see that the 2021 SBP amendment bill, which has raised a lot of cries among businessmen at all levels, will have serious negative effects on our economy to give autonomy to the central bank of the country, which implies ceding control. from the treasury to the head of the State Bank of Pakistan. I think the mistake of authorizing the East India Company should not be allowed to be reproduced by displaying an optimistic image to the Pakistani business community.
In accordance with the proposed amendment, immunity from any prosecution or investigation and investigation by the NAB or the FIA has been granted to the management of the SBP, including the current or former board of directors, the governor, the deputy governors, members of any board committee and monetary policy committee or staff. of the bank for any illegal act or exercise of any function or any legislation administered by the bank. Our country cannot afford this level of autonomy and immunity for such a critical institution because it would harm our economy as well as our country’s sovereignty. Not only that, but the tenure of the governor, vice-governors, external members of the monetary policy committee and non-executive members of the board has also been increased from 3 to 5 years with two terms authorized and an extension of d ‘a year.
While the government has justified this autonomy as a means of maintaining prices, there is no mention of inflation targets or price stability. How well can the state bank control inflation? Moreover, now the government can pay wages (albeit bad) by printing currencies, while restricting the printing of currencies or loans to our foreign indebted country will come under great pressure and we will have to beg for more loans. . The government will not be able to borrow from SBP under any circumstances, which will seriously affect the financial needs of the government and the public treasury and this will create difficulties for the government, pushing us into bankruptcy. The entire business community shows serious objections and reservations to these amendments as the SBP will not finance any rural credit, industrial credit, export credit, loan guarantees and housing credit, which means these sectors will have big problems, and the mafia with cash will do it. thrive at the expense of the common man and the small business community.
An independent SBP will dictate all of our institutional and state secrets, and operations in the national interest will be directly subject to security. The State Bank will be legally responsible for providing the information already committed to the international community via the FATF. The bill excludes any government representation on the board of directors of the State Bank, as no member of parliament or any state institution will be allowed to be part of the SBP or even be allied to challenge his irregularities in Parliament or in a court.
According to the new bill, monetary policy is the exclusive domain of the State Bank, while fiscal policies will be the responsibility of the federal government, which will seriously undermine and harm the macroeconomic management of the country as there will be no coordination or coherence between the two areas because these amendments are contradictory and are introduced with ulterior motives to push the country into bankruptcy.
The President, Prime Minister and Treasury Banks must not allow the implementation of these imported ideas duly led by the IMF as this will make our nation permanently BOUND. Therefore, we must say no to an independent SBP.
Note: The opinions expressed are solely my own and do not necessarily reflect the views or opinions of my party.