Advantage one: The autonomy of the SBP is good, much to be desired, for professional management of the economy. The SBP controls monetary policy by setting the interest rate. Why then is the IMF pushing the SBP to abandon the use of monetary policy for growth in the present contraction in Pakistan? So, the SBP will only use the interest rate to control inflation and adjust money supply to set the interest rate. Advantage three: Tighter autonomous control over money supply by the SBP, to control inflation, will also prevent the government from using the SBP to fund runaway expenditure.

Source: The Express Tribune November 29, 2021 13:25 UTC