Autonomy of SBP increased

KARACHI: The government has given free hand to State Bank of Pakistan (SBP) for the amendment in the laws related to electricity bills, ARY News reported.

A report issued by International Monetary Fund (IMF) stated that SBP policies have thus far failed to give sufficient priority to the crucial challenge of rebuilding reserves. 

“In the coming months, the SBP must unhesitatingly use every policy tool at its disposal to boost reserves, including adjusting the policy rate, intervening to purchase reserves on the spot market, and allowing greater flexibility of the exchange rate”, the Fund directed. 

According to the report the law ensures the complete operational independence, its strengthen the internal control as well as expand the organizational structure.

Following the amendment an independent monetary policy committee will be designed. The committee will prepare monetary policy and work on its implementation.