Central Bank Independence: Reformation or Deformation?

In recent months, debates on Central Bank Independence (CBI) have arisen in Pakistan following the Federal Cabinet’s approval of amendments in the State Bank of Pakistan (SBP) Act and its subsequent passage in January 2022. While some have tended to highlight the merits of CBI, others have raised concerns regarding the law. However, in order to facilitate an informed discourse on the complex issue, it is imperative to acquire and disseminate insights from leading economists who possess a profound understanding of the subject. Moreover, it is important to propose a way forward that is able to address the concerns surrounding the legislation and ensure that the SBP creates value for the public and serves Pakistan’s overarching long-term national interest.