The state of play for each of these as of 2006 is outlined briefly below, and will serve as a helpful point of departure for the discussion that follows. Is 2 per cent the optimal rate of inflation? Achieving and maintaining a low, stable, and predictable rate of inflation promotes economic welfare by reducing uncertainty and preventing arbitrary redistributions of wealth.
To build on the pace and momentum of financial sector reforms, SBP launched the next 10 years’ financial sector vision and strategy in July 2008. This strategy has been developed based on a comprehensive assessment and evaluation of the banking and the broader financial system that has helped identify the key issues and limitations.