'Countries with independent central bank achieve better outcomes': SBP

KARACHI: 'Pakistan is not the only country where changes in the central bank Act have been proposed for its autonomy and countries with an independent central bank achieve better outcomes in terms of growth, employment, and inflation.'

This was stated by Dr Reza Baqir, Governor of the State Bank of Pakistan (SBP), in an exclusive interview with the U.S. award-winning magazine South Asia. In his in-depth interview, Dr. Reza Baqir has shed light on how the SBP is playing a leading a role in the economic development of Pakistan, particularly during the Covid-19 pandemic. He said Covid-19 was a devastating blow to the Pakistan economy, but the government and the SBP acted in a coordinated manner to prevent the country from negative fallout during the pandemic.

Sharing his views about the autonomy of the State Bank, Dr Reza Baqir said the proposed amendments in the SBP Act will ensure that price stability is achieved in an independent and transparent manner, leading to macroeconomic stability and sustainable growth in Pakistan.

"The future direction for the SBP is to be an independent and credible central bank that achieves monetary and financial stability for the long-term benefit of the people by maintaining inflation close to its annual and medium-term targets, while also focusing on economic growth and employment,' he added.

In reply to a question about the relations of the IMF with Pakistan and its impact on the national economy, Dr Reza Baqir said that given the economic challenges Pakistan has faced during the last few years, the position the country is in today speaks of the success of the IMF program, while difficult structural adjustments and reform measures have helped to build buffers and create fiscal space to tackle challenges of the Covid-19 pandemic.

"Differences occasionally arise between the Pakistan authorities and the IMF on the tools and methods to be used to achieve our shared goals.

This is normal. Ultimately, both parties are able to bridge gaps and move on," according to Dr Reza Baqir, Governor State Bank of Pakistan.-PR

Copyright Business Recorder, 2021