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Draft Amendment Act prepared to give autonomy to SBP

Evelyn by Evelyn
March 25, 2021
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Draft Amendment Act prepared to give autonomy to SBP
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Draft Amendment Act prepared to give autonomy to SBP

In addition, it has been decided to extend the tenure of Deputy Governor SBP and Member Board of Directors for five years as per the draft SBP Amendment Act 2021 issued by the Ministry of Finance. Under the proposed draft, the governors and deputy governors could be appointed for the next five years after the end of their tenure. The President will be able to remove the Governor State Bank under a court order.
According to the proposed draft, legal action would be taken if rules were found against the governor, deputy governor and members of the board of directors. Under the proposed Amendment Act, the Secretary of Finance will no longer be a member of the Board of Directors.
According to the new amendment act, three deputy governors will be appointed by the SBP. The governor will consult the officials of the finance ministry for the appointment of the deputy governor. SBP’s autonomy, transparency, accountability process will be improved and transparency in SBP’s financial and administrative operations will be enhanced.

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