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Introduction:
The depressed economy and unstable social environment has delayed the economic
growth. Moreover there has been an ever going increase in the interest rate, bank
borrowing and inflation.
The monetary policy of the new year 2011 contains following heads of discussion
• Inflationary pressure:
• Price of commodity, shortage and investment
• Government borrowing:
• External current account
• Tax collection
• Fiscal deficit
• Petroleum prices:
• Policy stance
Inflationary pressure:
Inflationary pressure:
The trend in the inflationary pressure has been high
throughout the year and is predicted to increase the next year
as well. Following are some key points
Government borrowing:
Financial markets:
This build-up in reserves and thus NFA is one of the factors
responsible for stability in the financial markets, despite
increased borrowings from the scheduled banks by both the
government and the private sector
Tax collection:
Policy stance:
• The main stance of monetary policy is to handle the increasing inflation rate
and maintain a pause in government borrowing
• It has also targeted to use the external account deficit in a productive way and
also maintain the stability of financial markets
Strategic Planning:
Background:
Strategic planning exercise at the State Bank of Pakistan (SBP) was initiated with the
Strategic Plan (SP) of 2005-10 and it was intended to provide guidance and direction to the
departments in carrying out the reforms program during the next five years. SP 2005-10 was
built around functional and management strategies. The functional strategies enabled the SBP
to ensure soundness of
• The financial sector,
• Improve monetary management,
• Have prudent management of exchange rate and reserves,
• Develop efficient
• Sound payment systems.
The management strategies were linked up with the functional strategies to ensure that the
supportive infrastructure was available to effectively implement the strategic plan.
• Goal Setting
• Cultural Transformation
• Organizational Restructuring
The improved vision statement and values:
To be an independent and credible central bank that achieves monetary and financial
stability and inclusive financial sector development for the long-term benefit of the people
of Pakistan.
The change in the vision statement lead to a basic need of updating the core values of the
institute. The new Values proposed for SBP by senior management were:
• Integrity
• Accountability
• Teamwork
• Courage
• Excellence
• Result- oriented
Conclusion: