NA Standing Committee passes amendments to SBP Act

January 11, 2022 (MLN): The National Assembly’s Standing Committee on Monday passed the proposed amendments to the State Bank of Pakistan (SBP) Act, sources informed MG News. The amendments will now be tabled before the parliament.

The amendments were part of the International Monetary Fund’s (IMF) prerequisites for completion of the periodic review and release of the pending $1 billion tranche under the Extended Fund Facility (EFF).

Meanwhile, as per news reports on Monday, the IMF delayed the sixth review from January 12 to the last week of the month following a request from the government. The government made the request to discuss the finance bill and withdrawal of sales tax exemptions as it seeks the parliament’s approval.

As per the amendments, as shared by the SBP on its website, the Act aims to “balance the provision of necessary operational and financial autonomy to the State Bank with new mechanisms for enhancing transparency and strengthening accountability.”

The amendments identify domestic price stability as the primary objective of the SBP, followed by financial stability and support of the general economic policies of the Government.

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