“I am aware that all economists who have ever held a position in the federal government — are against granting autonomy to the State Bank of Pakistan (SBP) but I am not.”
“You being contrary?”
“Hey to be contrary is the mark of a leader…”
“Who said that? The Khan as far as I am aware hasn’t yet turned his formidable philosophical capacity to this issue yet…”
“You being facetious?”
“Hell no — Socrates, Kant, Descartes, Nietzsche, Marx — to name just a few — eat your heart out.”
“They probably are eating their heart out anyway I am for SBP autonomy because I don’t want ever want an accountant, read Ishaq Dar, to dictate policy to the SBP, read keep the rupee over-valued, to cater to his flawed policies for over four years, and keep the discount rate in the negative territory…”
“But don’t you think consultations between Finance and SBP through the fiscal and monetary policy coordination board was essentially a positive…”
“From an economist’s perspective the autonomy of the central bank would ensure a divorce between monetary and debt management and considering the Ministry’s poor debt management capacities…”
“So you think the divorce is…is…”
“Stop no examples please – anyway I want to say two things. First the focus must be to identify a selection process for the Governor, I mean it shouldn’t be based on an arbitrary selection or just because an applicant hosted a Player, with a capital P, in his home, and an entire team of men and women of integrity….and…wait let me finish…and don’t forget the constitution set up the National Economic Council…”
“And look where that led this country’s economy! In any case Pakistanis do not fully understand the distinction between letter and spirit - I mean notwithstanding the definition in the constitution of Sadiq, which may not fit Ayaz Sadiq, and Amin, which may not fit Amin Gandapur…”
“Don’t be facetious.”
“Anyway my second point is what all the economists and analysts are forgetting: in this country there is a distinction between de facto and de jure — this is why however good a policy, it is rarely implemented or however poor the performance…”
“Hush.”
Copyright Business Recorder, 2021
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