Federal Government announces major changes in State Bank of Pakistan laws

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Federal Government announces major changes in State Bank of Pakistan laws

ISLAMABAD – The government has announced drastic changes in the State Bank of Pakistan.

Addressing a press conference on Tuesday, Finance Minister Abdul Hafeez Sheikh said that the tenure of the SBP president will be of five years.

"The monetary fiscal board is being abolished. Like other countries, the role of the SBP will be to control prices and inflation. The practice of getting a guarantee from the State Bank of Pakistan is being abolished," he added.

Abdul Hafeez Sheikh said that the cabinet had approved three basic principles and their objective is to improve and strengthen economy. "The SBP will be made accountable before the parliament. The government-owned institutions should be under a central system and the role of ministries should be abolished," he maintained.

He said that the government would appoint CEOs of companies of the board. "It tax exemption to companies should be abolished. Some sections of the society have been given tax exemption and it should be abolished," he added.

The minister said that all sections of the society will have to pay the equal tax.

On the other hand, the federal cabinet has approved State Bank of Pakistan Amendment Bill and Institute of Education Draft Bill.