East India Company responds with SBP 2021 bill
Pakistan is going through multiple external and external crises. Economic crises from “ external debt service ” and “ local / internal debts ” are increasing day by day and the government is changing the engines but not the economic vehicle which must be totally reconditioned because it is incapable to stop the collapse of the economy.
We are in trouble today because of the lack of vision in our policies and the government does not grapple with the multiple aspects of fiscal policy. It conducts all policies on the basis of the guidelines given by the IMF without protecting the national interest and the well-being of ordinary people. Let me first discuss what we are up against and the long-term effects of IMF monitoring.
The IMF wants to push us into bankruptcy by devaluing our currency and allowing the inflation rate to ensure the rise in prices forcing the public to be in the streets. We must not forget that the West is very upset with our nuclear assets and will continue to hit us and push us into bankruptcy. It will have the worst negative effects that could pose a great threat to nuclear assets. It is strange to see that this 2021 amendment bill which has raised a lot of cries among businessmen at all levels and will have serious negative effects on our economy to give full uncontrolled autonomy to the Central Bank of country, which means ceding control of “KHAZANA” to the head of the SBP.
I believe that an error of authorizing the East India Company should not be allowed to be reproduced by displaying an optimistic image to the Pakistani business community. This will plunge us into new deep crises. It is our mistakes and our policies that force us today to import products from India – where are we going my dear compatriots?
In accordance with the proposed amendment, immunity from any legal action or investigation and investigation by the NAB or the FIA has been granted to the management of the SBP, including the current or former board of directors. , the Governor, Deputy Governors, members of any committee of the Board of Directors and the Monetary Policy Committee or staff of the Bank for any unlawful act or exercise of any function or any legislation administered by the Bank. Our country cannot afford this level of autonomy and immunity to such a critical institution because it would harm our economy as well as the sovereignty of our country. Not only that, but the tenure of the governor, vice-governors, external members of the monetary policy committee and non-executive members of the board has also been increased from 3 years to 5 years with two terms authorized and also an extension of a year.
In accordance with the latest proposed changes, the objectives of SBP have been specified for price maintenance and financial stability. While the government has justified this autonomy as a means of maintaining prices, there is no mention of inflation targets or price stability. How well can the state bank control inflation? Moreover, now the government can pay the wages (although it is bad) by printing currencies, while restricting the printing of currencies or lending to our country riddled with foreign debts will be under great pressure and we will be forced to ask for more loan? The government will not be able to borrow from SBP under any circumstances, which will seriously affect the financial needs of the government and the public treasury, which will create difficulties for the government which will push us into bankruptcy.
The entire business community shows serious objections and reservations to these amendments, as SBP will no longer finance any rural credit, industrial credit, export credit, loan guarantees and housing credit, which means that these sectors will have big problems and the mafia with cash will thrive. to the detriment of the common man and the small business community. The proposed amendments pose a serious threat to the sovereignty of our country because the Independent State Bank will be omitted from the domain of the State and it will be the State in the obligation to become the subordinate of the State Bank.
The independent SBP will dictate all of our institutional and state secrets, and operations in the national interest will be directly subject to security. The State Bank will be legally responsible for providing the information already committed to the international community via the FATF.
The bill excludes any government representation on the board of directors of the State Bank, as no member of parliament or any state institution will be allowed to be part of the SBP or even be allied to challenge its irregularities in Parliament or in court. What destruction of our economic system by certain geniuses working for the IMF that would be. Its basic program is to force the government to prioritize meeting the country’s external debt obligations over all other spending, and then continue to contract new loans from the IMF to increase its powers.
According to the new bill, monetary policy is the exclusive domain of the State Bank while fiscal policies will be the responsibility of the federal government, which will seriously undermine and harm the macroeconomic management of the country as there will be no coordination or consistency between the two areas such as these. the amendments are contradictory and are introduced with ulterior motives to push the country into bankruptcy. In fact, it was recklessly decided that now SBP is given the status of prestigious supreme state institution which would be above all law as even the Constitution.
Parliament, which can even dismiss a prime minister, cannot under any circumstances invoke the SBP or dismiss the governor or deputy governor of the SBP. It will only be a formality for the governor to submit an annual report or a semi-annual report, no less than the one to Parliament regarding achievements without any kind of accountability. What is the purpose of this report which can be dissected for the purposes of legal action? This is just a glance as this report cannot hold the SBP, Governor or any other SBP employee responsible for any wrongdoing or loss. The Pakistani President, Prime Minister and Treasury Banks must not allow the implementation of these imported ideas duly led by the IMF as this will make our nation its permanent slave. (The views expressed are mine alone and do not necessarily represent the views of my party.) The author is the former Minister of Interior of Pakistan, former chairman of the Senate Standing Committee on Home Affairs and chairman of the group Global Eye Reflection & Research & Reforms Institute (IRR) Islamabad. It can be reached at: [email protected], Twitter @Senrehmanmalik