It achieves this goal by targeting monetary aggregates (broad money supply growth as an intermediate target and reserve money as an operational target) in accordance with real GDP growth and inflation targets set by the Government. Qualitatively monetary policy formulation and its implementation has improved substantially, benefiting from the following actions.
•  First, legislative changes to the State Bank of Pakistan Act has empowered the SBP and SBP Central Board to formulate, conduct and implement its monetary policy  •  Second, a Monetary and Fiscal Board has been set up to ensure formal monetary and fiscal policy coordination and this Board is currently chaired by the Prime Minister in his capacity as Finance Minister with representation from economic ministries.