Former Finance Minister, Dr. Hafiz Pasha, on Wednesday, said that laws must ensure that the accountability of the State Bank of Pakistan (SBP).
“Laws must ensure the accountability of the State Bank of Pakistan and the accountability should rest with the government under the Prime Minister,” the former minister said.
He was speaking at a session “Understanding the Social Footprint of Central Banking & Monetary Policy in Pakistan” on the occasion of the 24th Sustainable Development Conference organized by Sustainable Development Policy Institute (SDPI).
Dr. Pasha said that there should be coordination between the central bank and the concerned ministries.
The former Finance Minister recommended that the government should bring back the inflation monitor, which kept track of inflation in different income groups as well as cities.
Chief Executive Officer Board of Investment and Trade Khyber Pakhtunkhwa, Hassan Daud Butt, while speaking said that a strong and long-term policy needs to be devised and implemented to prevent the frequent changes made in the monetary policies as they hurt the business community.
SDPI’s Dr. Vaqar Ahmed said the central bank should be granted a higher role and responsibility in mitigating inequality.
Dr. Sajid Amin said the inflation target should be set by parliament instead of the central bank. The central bank should consistently engage with the think tanks and ministries. Accountability must be established within the central bank as well as where policymaking is being done, he added.
Member of Prime Minister’s Economic Advisory Council, Dr. Alia Hashmi, said that more gender-inclusive committees for policymaking must be established to acknowledge the other half of the population. Transparency should be established in policies made by the state bank so the citizens may know the impact they will have on them, she added.