Autonomous SBP March 11, 2021 The State Bank of Pakistan’s amended Bill-2021 including the proposal for a new board of directors deserves some comments. It seeks to get the mandate to keep administrative and management powers which will also include the authority to formulate exchange rate policy. This proposed amendment has tried to define the objectives of the SBP itself by elaborating that the primary objective of the central bank is to achieve and maintain domestic price stability. There can hardly be any disagreement about the SBP’s potential contribution to the stability of the financial system of the country, but it is the government’s general economic policies that should be aligned to foster development and utilization of productive resources. The amendment also proposes abolishing the Monetary and Fiscal Coordination Board MFCB). This board currently plays its role under the chairmanship of the minister for finance with the representation of various ministries. Then there is the question of the board of directors itself which shall comprise the SBP governor and eight non-executive directors (NED), with one NED coming from each province. Other NEDs are proposed to be eminent professionals from the fields of accountancy, banking, economics, finance and others.