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EDITORIALS

Congress, RLD together
Other parties in UP worried
T
HE Congress, till a few days back giving the impression of going it alone in UP during the coming assembly elections, has shown pragmatism and abandoned the idea.

United in debt
Europe opts for fiscal discipline
T
HE 17 members of the European Union agreed in Brussels (Belgium) on Friday to adopt fiscal austerity and discipline they had forgotten since a single currency, the euro, was created 20 years ago.

Bill to protect women
A new deal for domestic workers
F
OUR million domestic workers in India are to be covered by the draft Bill on the protection of women from sexual harassment at workplace, which is now being examined by a parliamentary committee.



EARLIER STORIES



ARTICLE

The Bonn Summit and after
Threats and realities in Afghanistan 
by D. Suba Chandran
T
HE Bonn Summit, the latest on a series of international conferences on the future of Afghanistan, just got over in Germany. Commenting on the summit and Pakistan’s refusal to attend this event, The Daily Times, a leading English daily of Pakistan, in its editorial observed, “If Pakistan is not onboard, particularly now when it has adopted a confrontational policy, there will be a new civil war in Afghanistan post-2014”. Is this the reality in the Af-Pak region that stability cannot be achieved in Afghanistan post-2014, without Pakistan? Or is this a threat to the international community on what Pakistan is capable of doing? Or both?

MIDDLE

The reunion
by Jagvir Goyal

My wife had two very dear friends during college days — Protima and Manju. The friendship was close and every small event of life was shared by her with them. The relationship continued till each of the three-some got married.

OPED Neighbours

Women must get their due
The myths created by landlords in Pakistan to deny women the right to inherit land by refusing to give them in marriage, or marrying adult women to children, so as to retain land under family ownership, have been exposed many times over. 
I.A Rehman
P
AKISTAN'S women will have a great deal to celebrate if parliament can adopt the three bills concerning them that are on its agenda.

A troubled central bank
Muhammad Yaqub
T
HE State Bank of Pakistan (SBP) is one of the premier national economic institutions legislated to play a key role in macroeconomic management, control on inflation, conduct of monetary policy and development and supervision of a sound and stable banking system.






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Congress, RLD together
Other parties in UP worried

THE Congress, till a few days back giving the impression of going it alone in UP during the coming assembly elections, has shown pragmatism and abandoned the idea. It has finalised a seat-sharing arrangement with Mr Ajit Singh’s Rashtriya Lok Dal (RLD), known for its support base in western UP. The RLD will be contesting for 45 seats from western UP and for three seats in Poorvanchal, and the rest of the state will be left for the Congress to field its candidates. There has been a very hard bargaining between the two. It started with 100 seats being demanded by the RLD in a House having the strength of 403. Ultimately, it has settled for less than half of it with a Cabinet birth for Mr Ajit Singh in the UPA government at the Centre. The BJP, which had been endeavouring for a tie-up with the RLD, has been left in the lurch.

Both the Congress and the RLD will be the gainers in a region where the other parties — the ruling BSP, the SP and the BJP — do not have a strong base. The RLD is basically a party of the Jats, but it can hope to get considerable Muslim support with one of the popular leaders of the community, Chaudhary Rasheed Masood, having joined the Congress, though informally for tactical reasons. The Congress, too, will now be in a better position to give a fight to its rivals with maximum Jat and Muslim support. Chaudhary Masood, who has been with the SP leader, Mr Mulayam Singh, for a very long time, has come to the Congress fold highlighting two major issues — reservation for backward Muslims and the division of UP into four states as proposed by Chief Minister Mayawati. These issues are likely to influence the voting pattern in the assembly elections.

The formation of the Congress-RLD alliance and Chaudhary Masood shifting to the Congress side must have jolted both the major players in UP — the BSP and the SP. It will now be easier for the Congress to challenge the supremacy of these caste-based parties, whose vote banks constitute former supporters of the Congress. The BSP and the SP have suffered considerable erosion in their following, and their loss may be the gain of the Congress.

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United in debt
Europe opts for fiscal discipline

THE 17 members of the European Union agreed in Brussels (Belgium) on Friday to adopt fiscal austerity and discipline they had forgotten since a single currency, the euro, was created 20 years ago. Britain, which has its own currency, did not join the pact. Prime Minister David Cameron felt, reflecting the dominant mood back home, the European plan of stricter fiscal oversight would in no way benefit Britain. Opinion is divided on whether London, which is the nerve centre of Europe’s financial services, would gain by rejecting the regulations decided in Brussels. Some fear Europeans could move much of their banking activities to Frankfurt, where the European Central Bank is located.

The agreement stipulates that the euro zone members would keep budget deficits below 3 per cent of their gross domestic product. The debt levels would also be maintained below 60 per cent of their annual economic production. An “automatic correction mechanism” would set in if the terms are violated. Each member will submit a draft of its national budget to the European Council, which will ensure the guidelines are adhered to. Each country will incorporate restrictions on debt in its laws under the supervision of the European Court of Justice. These conditions were there earlier also but were seldom enforced.

The euro zone’s troubles started when some members, particularly Greece, Ireland, Portugal, Italy and Spain, took large amounts of low-cost debt to fuel their consumption-led growth. The 2008 global meltdown shook economies and banks. Growth slowed, while the cost of funds went up. Germany has emerged as a major beneficiary of the formation of the EU. France’s gains have been moderate. After the initial years of buoyant growth, other members like Austria, Belgium, Finland and the Netherlands, have witnessed high rates of unemployment. Britain has kept itself aloof from the simmering Europe. Until growth revives, unemployment comes down, more money is pumped in to save troubled banks, and the US economy recovers, the euro zone troubles are here to stay. One treaty cannot undo the damage accumulated over the years through profligacy and reckless borrowing. 

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Bill to protect women
A new deal for domestic workers

FOUR million domestic workers in India are to be covered by the draft Bill on the protection of women from sexual harassment at workplace, which is now being examined by a parliamentary committee. If the bill gets the nod of Parliament, the scope of workplace will be stretched beyond offices and factories; to homes and even vehicles used for ferrying women to and from their workplace. The intentions of the parliamentary committee are good, but the moot point is the implication.

One need not forget the abuse of IPC 498 A, which was framed in all sincerity to save young women from the harassment from dowry-seekers, but ended up also being misused by those very brides for the harassment of their in-laws. The fears of the same happening to this bill can’t be ruled out, if it is cleared in a rush. If the employee needs protection from misuse of powers of the employer, the reverse should also be examined. Moreover, most maids work for more than one home, at times for a very short duration. There are part-time helps too. How many employers will then be identified? And, if the employer needs to be brought under the purview of the law, is there a foolproof mechanism in place to verify the antecedents of four million domestic servants? The police confesses it takes close to six months to verify the addresses of domestic servants who come from the hinterland, in the absence of a computerised national data bank. There have been cases where the ‘help’ disappeared after committing a crime, without a trace. Also, the lure to make quick money through blackmailing, like in the case of Strauss Kahn, will always be there, and the law could be twisted to suit their tale.

Domestic workers should be protected against sexual harassment, but this is not the only ‘uncalled for act” against them. There are many more sensitive issues involved here, as one is made aware of in ‘The Help’, a Hollywood film released recently. Domestic workers also need self-respect, clean environs, basic health care facility and decent education for their children. These issues and the issue of their wages too need to be taken care of. 

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Thought for the Day

Non-violence leads to the highest ethics, which is the goal of all evolution. Until we stop harming all other living beings, we are still savages. — Thomas Edison

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The Bonn Summit and after
Threats and realities in Afghanistan 
by D. Suba Chandran

THE Bonn Summit, the latest on a series of international conferences on the future of Afghanistan, just got over in Germany. Commenting on the summit and Pakistan’s refusal to attend this event, The Daily Times, a leading English daily of Pakistan, in its editorial observed, “If Pakistan is not onboard, particularly now when it has adopted a confrontational policy, there will be a new civil war in Afghanistan post-2014”. Is this the reality in the Af-Pak region that stability cannot be achieved in Afghanistan post-2014, without Pakistan? Or is this a threat to the international community on what Pakistan is capable of doing? Or both?

First, a short note on the Bonn Summit and a reality-check of Afghanistan post-2014. President Hamid Karzai asked for the continuation of political, military and economic support to Kabul, at least for the next 10 years — meaning up to 2025 — and he got it. According to his estimates, Afghanistan would require minimum $10 billion annually during the next decade. To sustain the security of Afghanistan, its economy and a decent living standard, Mr Karzai would, in fact, need more than a mere $10 billion.

But what the international community wanted from Mr Karzai were certain promises in return. The first major concern is the process of governance and the management of the economy. Will Mr Karzai be able to provide governance, at least of South Asian standards? Will the Afghan government, more importantly, its military and police, at least be able to secure the popular support against the Taliban, forget fighting and winning them? With the international troops, especially the European soldiers, starting to leave Afghanistan, their aid to Kabul is likely to decline drastically, as their interest in the Af-Pak region will not remain at the same level. Their primary interest is likely to be focused on organising periodic conferences to analyse what lessons they have learnt!

Now coming to Pakistan, what is likely to be Islamabad’s strategy after the Bonn Summit? It was unfortunate that Pakistan skipped the summit, protesting against the NATO (read the US) strikes, days before the Bonn Summit, on two Pakistani posts across the Durand Line, killing more than 24 soldiers. Immediately after the attacks there was national outrage against the US and also Pakistan’s policies towards supporting the NATO troops in Afghanistan. The political leadership, mainly to address the growing public hostility, immediately stopped the NATO supply lines into Afghanistan through Pakistan, asked the US to vacate the Shamsi airbase in Balochistan (which the US has been using), and announced that it would not take part in the Bonn Summit. General Kayani declared that he had granted full liberty to his troops to respond, if they were attacked. Clearly, Pakistan raised its rhetoric vis-à-vis the US and Afghanistan.

In retrospect, Pakistan must be regretting its decision not to attend the Bonn conference. While Islamabad and its military, like any other country in the world, have every right to defend their sovereignty and take appropriate actions, the decision on the Bonn Summit was, perhaps, taken in haste. Now when the summit is over, a section may feel they have lost an opportunity, while another may think that Pakistan has proved a point by not going to Bonn. A majority within Pakistan would like to insist that without Pakistan, a solution could not be found. Back to the original question — is this a reality or a threat, or both?

Undoubtedly, Afghanistan cannot get stability without active and positive inputs from Pakistan. This is a reality. However, an unstable Afghanistan will not be in Islamabad’s interests and may seriously undermine the security situation within Pakistan. The more Afghanistan remains unstable, the more Pakistan is likely to feel the pangs of it. Half of the ills that Pakistan is facing today started with instability in Afghanistan in the 1980s. The movement of refugees across the Durand Line and their multiple camps created new forms of insecurity in Pakistan. The Taliban, meaning students, were the products of not only the madarsas of the NWFP and FATA, but also of refugee camps.

Undoubtedly, the Taliban factions were used, perhaps abused, by the Pakistani establishment in the mid-1990s, but Islamabad cannot be wholly blamed for “creating” them. The Taliban were already there, the outcome of Afghan jihad-I in the 1980s. A section within Pakistan simply made use of them, for their own objectives, widely believed to a part of their “strategic depth” idea. While Pakistan seemed to be succeeding in finding “strategic depth”, it came to haunt them during the last decade. The Tehrik-e-Taliban Pakistan (TTP) has killed more Pakistanis than the American drones have done. The TTP has struck deep inside Pakistan; in fact, all over the country — Karachi, Lahore, Islamabad and Peshawar. While the question of Pakistan’s sovereignty is limited to the Abbottabad raid (killing of Osama bin Laden), multiple drone attacks (none outside FATA) and a few cross-border raids, including the latest one, tell a different story.

The TTP has violated Pakistan’s sovereignty much more than the American troops and drone attacks. The TTP would not have become a monster going after Pakistan’s interests, had Afghanistan been stable. A section within Pakistan, especially the moderates, believes an unstable Afghanistan is not in Pakistan’s interests; they even would like to rethink the “strategic depth” idea vis-à-vis Kabul.

However, there is another section, mostly in the military, the ISI and the radical groups, that considers that Afghanistan is their trump card. This section considers that the international community, especially the US, is completely trapped in Afghanistan. They not only want an early exit, but also a face-saving one. The international community, especially NATO, cannot afford a bloody exit. Pakistan knows this too well.

It is no secret that Pakistan has deep linkages within the Taliban and the Haqqani network. The US and NATO are well aware of this; to be fair to the Pakistani handlers of the Taliban, the US, in fact, has used this linkage when it wanted to reach the Taliban in its effort to contact the “moderate” or “good” sections.

True, Pakistan has not taken part in the Bonn Summit. But it knows very well that it has the capabilities to make NATO’s exit really painful from Afghanistan. Even the international community is well aware of the dangers that Pakistan could pose to the future of Afghanistan. It is not the $10 billion that Mr Karzai has requested for in Bonn that would lead to a stable Afghanistan. Rather, it would be Pakistan. And Islamabad, the ISI and the military knows this conundrum too well.

However, what the above section within Pakistan does not understand, or does not want to accept is that an unstable Afghanistan is not in their interest. Worse, they believe they could control Afghanistan. Such a belief is not only unrealistic, but also naive and dangerous. From the Greeks under Alexander the Great to the Americans under President Obama, no one has been able to subdue the various Afghan factions, especially the Pashtuns. If the Pakistanis under President Zardari, General Kayani and General Pasha believe that they can, they should, in fact, be allowed to do what they want. Afghanistan would become a strategic trap for them, rather than providing any “strategic depth”.

Let the international community call Pakistan’s bluff. They would never be able to control Afghanistan; any attempt would only be suicidal. The threats that Afghanistan poses to Islamabad are more than what Pakistan poses to Kabul.

The writer is Director, Institute of Peace and Conflict Studies, and Visiting Professor, Pakistan Studies Programme, Jamia Millia Islamia, New Delhi. 

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The reunion
by Jagvir Goyal

My wife had two very dear friends during college days — Protima and Manju. The friendship was close and every small event of life was shared by her with them. The relationship continued till each of the three-some got married.

In the seventies and the eighties, there was no Facebook, nor were any mobiles or email addresses. So, engrossed by her new set-up and then the kids, my wife lost whatever whereabouts of her friends she had. Only their names figured in her talks about the college, the university and the pre-marital days.

Twenty-five years after the marriage, she started remembering them a lot. How could I find them? She would often mumble and fall silent. During such moments, I resolved to locate her friends though I never committed this to her.

One day, while sitting together, I asked her where Protima got married. She thought a lot, then remembered, “To someone in Kota. Her father-in-law had a big chemist’s shop. That’s all I know.”

That night I sat at my PC and searched the internet. A list of chemists in Kota sprang up. “What was her full name?” I asked. “Protima Oberoi”, she replied. I short-listed a few drug stores owned by the people of same caste. Next morning, I started ringing them up, one by one.

“Would there be some Protima Oberoi in your family?” the question was odd but I persisted, explaining the reason behind. A firm “No” followed by a hung-up would happen every time. Exactly when I started getting wary of the exercise, a person replied, “Why, yes! She is my wife!”

Then a long talk followed. Protima came on the line. There was a heart-to-heart talk between the two lost friends, the telephone bill notwithstanding. “Do you sing as beautifully as you used to during university days?” my wife asked. “My daughter sings now,” laughed Protima. “She is getting married next month. Join us then!”

And it was hard for my wife to erase her frozen image and imagine the young, chubby Protima having a marriageable daughter!

One friend discovered, I asked about the second too. “I know nothing except that Manju had found a job in IDBI Bank and was married in a Luthra family”, she told me.

There is a saying that Delhi people never leave Delhi. Now, it applies to NCR also. Since my wife and Manju were together in Faridabad, as an arrow in the dark, I enlisted all branches of IDBI Bank in Faridabad and Delhi and kept the list with me.

One fine day, I began dialling the numbers of IDBI Bank branches. There was no breakthrough. Due to some work, I had to leave the list halfway down. In the evening, I resumed the task. I didn’t know when the clock struck 6 p.m. “Oh! The banks might be closed”, I thought as I dialled the last number.

Someone not sounding like a bank employee picked up the phone. A wrong number, I thought, yet asked him. He was the watchman of the branch. I repeated the question I had asked a dozen times by now, “Is there someone called Manju Luthra in your bank?”

“She is the Chief Manager here,” came the reply. “Now she has gone home. Ring up tomorrow,” he said and hung up.

Stunned, I kept sitting like a statue. Then a sort of euphoria of discovering something impossible took me over.

Next day, again, a heart-to-heart talk between my wife, her face beaming with joy, and Manju followed.

“You have fulfilled my long-pending desire,” my wife said. “I never thought I would ever meet them again in life”. I revelled in my accomplishment.

Next morning, when I got up, my wife came to me with a cup of tea. “You know, I had a very dear friend, named Suman, during my childhood days. Could you find her too?”

I sat with my mouth gaping.

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OPED Neighbours

Women must get their due
The myths created by landlords in Pakistan to deny women the right to inherit land by refusing to give them in marriage, or marrying adult women to children, so as to retain land under family ownership, have been exposed many times over. 
I.A Rehman

PAKISTAN'S women will have a great deal to celebrate if parliament can adopt the three bills concerning them that are on its agenda.

A bill to turn the National Commission on the Status of Women into an autonomous body for the empowerment of women and elimination of all forms of discrimination against them has recently been introduced in the National Assembly.

The need for a permanent commission with sufficient authority to assail the various forms of injustice being done to women is evident and the proposed measure should not attract controversy. There may be some difference of opinion among the political parties on the degree of freedom Pakistani women should enjoy but there can be no disagreement on women's rights being respected as human rights. One should like to hope that this bill of fundamental importance to the movement for women's emancipation and empowerment will be vigorously pushed through both Houses of parliament and enacted at an early date, with the maximum possible unanimity.

A bill to effectively deal with incidents of burning women with acid or otherwise is before the Senate. Nobody can say that the burning of women to death or disfiguring their faces is not a heinous crime. Besides, the measure has already been discussed threadbare by the legislators. One step more and it should become law.

The third bill that aims at the eradication of some of the most evil practices against women was recently unanimously passed by the National Assembly and rightly hailed by all supporters of women's causes. The measure provides for stiff punishment for young girls' so-called marriage to the Holy Book, or forcibly offering them in marriage to settle a civil dispute or a criminal liability, or depriving women of their inheritance through deceitful means.

The provision relating to the last mentioned crime is particularly significant. While all provisions of the bill address some of the worst forms of excesses against women, this one has a direct bearing on their right to economic independence, without which they cannot acquire their due status as equal and productive members of society. The importance of the move can be judged from the history of resistance to any attempt to secure women's right to inheritance, especially to landed property.

When the first Sharia Bill was introduced in the Central Legislative Assembly of India in the 1930s, Muslim landlords in the House had only one concern - that their practice of preferring rivaj (custom) to the Sharia should not be interfered with.

(And Mohammad Ali Jinnah agreed to push the bill only because it promised some relief to Muslim women.)

The West Punjab bill of 1948, that upheld women's right to inherit land, led to a revolt by the feudals in the Muslim League party and a split was averted with great difficulty. Some time ago, the Law and Justice Commission expressed its concern at the denial of women's right to inheritance although it was respected by Islam and the law both. In the case of the present bill, too, the feudal lobby lowered itself further in public esteem by blocking its adoption through sheer cussedness.

The myths created by landlords to deny women's right to inherit land by refusing to give them in marriage, or marrying adult women to children, so as to retain land under family ownership, have been exposed many times over. Nobody believes the tales about women giving up their claim to inheritance out of love for their brothers, who in many cases are only looking for excuses to kill their female siblings for 'honour'. The plea that women are given dowry in lieu of their share in inheritance is absurd because no landlord deducts from his son's inheritance the heavy expenses incurred on his wedding extravaganzas.

Quite a few well-meaning people have declined to share human rights activists' joy at the adoption of the bill on anti-women social practices in view of the poor record of implementation of laws, especially those that promise relief to the female population. They have a point but that does not justify giving up all progressive legislation.

Laws are useful milestones on the route to social progress. Besides, everybody knows that laws alone cannot bring about social change even if they are duly implemented by a strong government. Wherever governments are found wanting in will or means of enforcing the laws, the greater becomes the responsibility of civil society to carry the reform agenda forward.

The fight against feudal biases against women is going to be long and bitter. While every effort should be made to prevent the state from abdicating its duties, the major burden of change will have to be borne by society, not only women but also, and more essentially, men.

A welcome feature of the latter two of the three bills is the fact that they were introduced by women parliamentarians in their private capacity and their progress has been made possible by the government's support for them. Some credit to the beleaguered government! This vindicates the decision to increase women's seats in parliament as women belonging to different political parties have been able to forge unity on critical issues and they have also shown a highly laudable capacity to initiate sound legislative proposals.

Further, the case for allowing private members' business more time and greater respect has been strengthened. Efforts to reduce the government's interference in private members' bills will now be in order. Is it too much to expect that these three bills and the ill-starred bill on prevention of domestic violence will be adopted within the current parliamentary year?

By arrangement with Dawn, Islamabad

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A troubled central bank
Muhammad Yaqub

THE State Bank of Pakistan (SBP) is one of the premier national economic institutions legislated to play a key role in macroeconomic management, control on inflation, conduct of monetary policy and development and supervision of a sound and stable banking system.

A large part of the blame for the present financial indiscipline in the public sector, a high rate of inflation and a slow rate of growth of the economy falls on the shoulders of the SBP, particularly keeping in view the statutory authority it has since 1997 to "determine and enforce" the limit on government borrowing from the SBP for all purposes, and at all levels of the public sector.

In its history since independence, the SBP has gone through many ups and downs in the performance of its vital central banking functions but has never been as ineffective in national economic and financial matters as it is today.

Prior to the legislative reforms of the 1990s, and in spite of the de jure limitations under which they operated, several SBP governors tried to perform central banking functions with determination and professionalism.

Even when most of them were not economists by training or central bankers by experience, those governors had a basic grasp of macroeconomic policies as well as vast experience in macroeconomic policymaking. Therefore, by the sheer weight of their stature and experience they played a key role in economic management.

Zahid Husain, the first governor, laid solid foundations of the SBP both because of his technical competence and his personal standing. Abdul Qadir, S.A. Hasnie, A. G. N. Qazi and Ghulam Ishaq Khan who followed him consolidated the professional base and standing of the SBP, and were able to effectively contribute to macroeconomic management.

V.A. Jafarey and I.A. Hanfi lost their jobs trying to insulate the SBP from day-to-day government interference in its functioning and policy differences.

With a worldwide recognition of the importance of the autonomy of a central bank for macroeconomic stability and control on inflation, and with a deteriorating economic and financial situation in Pakistan and increased interference by the Ministry of Finance in banking matters, the need for a legally autonomous and operationally assertive SBP was realised very acutely in the 1990s.

Accordingly, beginning with Moeen Qureshi's interim government in 1993, the subsequent governments supported a reform programme for the SBP and took several legislative measures to strengthen its legal foundations for the conduct of an independent monetary policy which was believed to be a precondition for control on inflation and for improvement in financial intermediation in the country.

In 1994, the Benazir Bhutto government passed legislation to provide protection to the tenure of the SBP governor and to make the SBP administratively autonomous. In 1997, the Nawaz Sharif government empowered the SBP to "determine and enforce" the limit on government borrowing from the SBP for all purposes on monetary policy considerations, and made the SBP the sole regulatory authority over the banking system.

An institutional and procedural framework was agreed between the government and the SBP and put in place during 1997-99 for implementation of these reforms.

However, the new legal framework and institutional arrangement for monetary policy formulation and implementation were pushed aside during the Musharraf era, and the SBP lost in practice what was gained through legislative and institutional reforms.The situation by now is worse than what it was before the banking reforms of the 1990s.

There is a de jure autonomy of the SBP which is frequently mentioned by the government as well as the SBP in their publications and public statements, but the de facto situation is that the SBP has surrendered its de jure autonomy and subordinated monetary policy to the dictates of the fiscal authorities.

At present, the monetary policy is not framed on the basis of the amended SBP Act. The SBP willingly lets the government print notes or borrow from commercial banks beyond safe limits, fuelling inflation, crowding out the private sector and stifling economic growth.

The SBP has also organisationally fragmented itself by creating two independent statutory bodies called the SBP and the Banking Services Corporation (BSC), the former dealing with monetary policy and bank supervision and the latter with operations. The two have their own separate legal status with independent chief executives and legally separated staff.

There are not many central banks that have organised themselves in this fashion because polices and operations are intimately interconnected and the staff experience in both the areas would make it most effective and cohesive.

Moreover, the position of the deputy governor (policy) has not been filled for almost a decade and deputy governors on the operational side have been 'imported' from outside with no training in central banking and no institutional memory to rely upon.

The SBP has also weakened its grip on the commercial banks that look more towards Islamabad than the SBP for signals and guidance in managing their affairs. The banks, operating under the SBP's weak regulatory authority, have been fleecing the depositors as well as borrowers while the shareholders have been minting money and senior commercial bank executives getting hefty compensation.

The governance structure of banks remains primitive and banking supervision does not focus on macro-indicators of risks and measures to avoid systemic problems.

— By arrangement with Dawn, Islamabad

The writer is a former Governor of the State Bank of Pakistan.

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