Move to improve accountability mechanism, Central bank will be able to contain inflation
Karachi (Pakistan Point News - 12rd March, 2021) Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday lauded the efforts of the government to empower the State Bank of Pakistan (SBP) through legislation.
The empowered central bank will be able to deliver according to its mandate which will help control inflation and improve the economy, he said.
Mian Zahid Hussain said that the Federal Cabinet has allowed amendments in the SBP Act which will make things transparent and improve the accountability mechanism.
Talking to the business community, the veteran business leader said that after approval of the decision by the Parliament the regulator will be able to combat inflation and ensure better usage of resources.
It will stop the government to borrow from the central bank which results in inflation while the institution will be free from unnecessary control of the finance ministry while the governor of the SBP will be answerable to the Parliament, he added.
He said that the government will abolish the Fiscal and Monetary Policy Board formed by the former government while the tenure of the governor of SBP will be extended by two years to five years.
It may be mentioned that out of five former governors of the SBP, four left the job before completion of their term due to unnecessary meddling by the finance ministry but now this will come to an end.
Mian Zahid Hussain further said that the volume of tax relaxations are equal to three percent of the GDP while the same is two percent in India and one percent in South Korea.
This must be brought down without delay ensuring smooth sailing of the economy.
