SBP should be independent, autonomous: SDPI

November 12, 2021: Sustainable Development Policy Institute (SDPI) Executive Director Dr Abid Qaiyum Sulehri briefed Lahore Economic Journalists Association (LEJA) on 'Understanding Social Implications of Monetary Policy in Pakistan' at local hotel on Thursday.

The session was attended by Country Director by Friedrich Ebert Stiftung Dr. Jochen Hippler and LEJA President Sudhir Chaudhry.

Sulehri suggested that State Bank of Pakistan (SBP) should act as autonomous body which is answerable to parliament. He said that the central bank should operate independently through its schemes and policies. The policy should be treated as public policy.

The key speaker of the session and Researcher Dr. Sajid Amin Javed said, “The public sector institution should be autonomous which could operate independently through its schemes and policies targeting the welfare of the public." He provided insightful findings of the social implications of the monetary policy of State Bank to the economic journalists.

Dr. Sajid suggested that the SBP should follow a specific indicator for reporting the inflation rate and emphasized upon the accountability of the designated autonomy to the SBP.

While sharing the recommendations with the economic journalists, he said that SBP must focus on price stability to ensure progress on development agenda of the country and welfare of the public.

Monetary policy should have qualifiable targets, which can be traced and measured, he said, citing that targets under each objective of the SBP should be directly quantifiable and penned down in black and white through secondary legislation.

He said that SBP should take a lead on expanding research agenda and collaborations with academia, development sector, particular policy think tanks.

Dr Sajid also recommended that decision-making in the SBP needs to be more participatory and gender-balanced in the board of directors, governors and Monetary Policy Committee (MPC).

Dr Sajid said that SBP should work to expand its research agenda to explore monetary policy and inequality inter-relations and calibrate decisions making process to refine monetary policy actions and instruments accordingly.

APP