The federal government is gearing up to introduce a series of substantial amendments to the State Bank of Pakistan (SBP) Act. These proposed changes are set to revolutionize several aspects of the central bank’s operations, including allowing dual nationals to occupy pivotal roles and legalizing the use of digital currencies such as cryptocurrencies, notably Bitcoin.
Finance Ministry Proposes Various Amendments
According to reliable government sources, the finance ministry has put forward approximately a dozen amendments, which have undergone scrutiny by the Ministry of Law. With these proposed changes now submitted to the federal cabinet for approval, the government is signaling a notable shift in its financial policy framework. The amendments intend to clarify the issuance of digital currency by the SBP, empowering the central bank to manage Pakistan’s monetary system in both physical and digital realms.
SBP To Launch A Dedicated Subsidiary
In an innovative move, the SBP is preparing to establish a specialized subsidiary focused on developing and overseeing advanced digital payment systems. This initiative aims to significantly enhance financial efficiency and accessibility across the nation. Furthermore, the proposed amendments seek to repeal the ban on dual nationals serving in key positions such as governors, deputy governors, and non-executive directors of the SBP board. This restriction, introduced in January 2022 under IMF-influenced amendments, was not specifically mandated by the IMF.
Legal Provisions For The First Time!
In a groundbreaking development, the proposed amendments have introduced legal provisions for digital currency for the first time within the SBP Act. This represents a departure from the State Bank of Pakistan’s historically cautious stance on digital currencies, which it had previously warned against through public advisories. The amendments also propose penalties for the unauthorized issuance of digital currencies, aiming to regulate this burgeoning sector more effectively. Additional proposals are focused on enhancing the governance of the SBP board by granting it increased authority in the approval of financial reports and clarifying procedures for board meetings.
Should these changes receive approval, they could substantially transform financial governance and the utilization of digital currency within Pakistan. This transformation holds the potential to unlock new avenues for economic growth and innovation, positioning Pakistan as a forward-thinking player in the global financial landscape.
