ISLAMABAD: The Upper House Tuesday okayed the State Bank of Pakistan (Amendment) Bill 2015 unanimously.
The aim of passing the said bill was to bring the existing legislation in conformity with the international best practices of a modern central bank.
Federal Minister of Water and Power Khawaja Muhammad Asif moved the bill on behalf of Minister for Finance and Revenue Ishaq Dar in the House. The statement of objects and reasons of the bill says, the existing clauses pertaining to shareholders, executive committee and local boards have been omitted in the SBP Act by introducing various amendments in the Act since these are no longer relevant after the promulgation of the Bank (Nationalization) Act, 1074.
Another new section on regulatory power has been introduced in the Act, in order to provide explicit powers to SBP for issuing directives, imposing and recovering penalties, which are already being exercised by SBP under Banking Companies Ordinance 1962. The role of SBP has been strengthened further by substituting the Federal Government’s approval wherever required with the Board’s approval.
