Cabinet briefed on reforms progress: SBP autonomy: government to amend laws by September

Islamabad plans to amend existing laws by September 2020 to further strengthen the institutional autonomy, governance and mandate of the State Bank of Pakistan. The latest progress report on institutional reforms has laid out timelines for pending reforms, of which, strengthening the central bank's mandate and autonomy sit atop.

The institutional reforms progress report presented to the Cabinet yesterday by the Advisor to the Prime Minister for Institutional Reforms & Austerity, Dr. Ishrat Husain, has laid out multiple reform agendas in three broad categories. The categories include restructuring and strengthening of key institutions of economic governance, reorganizing the federal government, and civil service reforms.

The progress report highlights the end-to-end automation of process at the Securities and Exchange Commission of Pakistan (SECP), as being underway. The SECP policy board has already been revamped and will be chaired by a private sector expert rather than the Secretary Finance.

On reforms pertaining to the Finance Ministry, the Public Financial Management Law, delegating financial powers to the line ministries, has already been approved by the parliament. The report shows mixed progress on setting up of various key units at the Finance Ministry aimed at improving cash and debt management and fiscal and macro policy formulation. The reform requires setting up of Treasury Office, Fiscal and Macroeconomic Coordination Unit and Debt Management Coordination Unit, of which the latter is in place.

The separation of policy board of the FBR and the relocation in the Ministry of Finance is duly acknowledged in the progress report. The World Bank's program is aimed at assisting the FBR, increasing harmony between FBR and provincial authorities, reducing reliance on WHT regime and automation of process to minimize human contact in the taxation process. These are some of the key reform areas, the progress on which has been marked as 'ongoing'.

Most reform areas at the Ministry of Planning and Development appear well on-track, with the CPEC Authority already in place. Progress is under way on strengthening the Monitoring and Evaluation Unit, whereas the CEO for the Public Private Partnership Authority has been selected.

Review is underway on strengthening the Competition Commission of Pakistan, as it is believed to be constrained by legal issues. Similarly, the modernization and revitalization of the Auditor General of Pakistan is also on the reform agenda, and the Finance Ministry will present a report before the cabinet.

The plan to retain 324 out of 441 Organizational Entities (OEs) by the federal government as Executive Departments and Autonomous Bodies, has also been approved by the cabinet. The OEs have been divided into seven categories, of which 43 are to be either privatized or transferred to Sarmaya-e-Pakistan.

Furthermore, 14 federal OEs are to be transferred to the provinces, while 35 are slated to be merged. Eight entities are lined up to be liquidated. The number of autonomous bodies and executive departments to be retained is 237 and 87, respectively. An implementation committee formed by the cabinet oversees the progress on weekly basis.

Keeping pace with technology, a roadmap has been prepared for an E-Office suite for all ministries, monitored by the Information Technology ministry. The E-governance solution is likely to be in place by June 2020.

The area of civil service reforms, and perhaps closes to the Minister's heart, has seen the least progress. The HR policies top the agenda, where various proposals on recruitment, career progression, compensation, retirement etc. are under discussion and are at different stages of progress.

June 2020 is targeted for an Integrated Human Resource Management Division within the federal government. Interim financial relief to Federal Secretariat officers is also part of the reform agenda, which also makes way for dual nationals to be appointed in the government.