Q. In a detail analytical essay explain the ‘Monetary Policy Framework’ of Pakistan w.r.t its ultimate goals, nominal anchor and operational targets. Mention specifically, which monetary policy tools the SBP use and which of these tools shows the Monetary policy stance of the SBP; What is meant by the monetary policy stance of SBP ; what has been the monetary policy stance of SBP throughout the FY2020; and by how much basis points and how many times SBP changed its ‘Policy Rate’ throughout the fiscal year and on what grounds.

(You can take help from):

1. last three quarter’s SBP( quarterly) publication, ‘The state of Pakistan’s economy’.
2. Monetary Policy Statements from July 2019 till June 2020

Both are available on SBP main website.)

SBP = STATE BANK OF PAKISTAN