The proposed amendment would also enable SBP to seek information from the unregulated commercial entities and conduct limited inspection for verification of such information. For entities in a financial group which fall under the purview of the securities regulator’s supervision, the current supervisory mechanism also needs to be amended to move towards greater consolidated supervision.
As Simon Nixon recently wrote in the Wall Street Journal: “For euro-zone countries facing high borrowing costs or reliant on international aid to fund their budget deficits, fiscal consolidation wasn’t a choice but a necessity.” And it still is. Even so, now that market pressure has eased somewhat, so has the political will to consolidate.