The Department came into being in September 2006 when the
task of economic surveillance was separated from the then
existing Research Department as a part of comprehensive reorganization
of the central bank. The role of the new Department was to
monitor developments on macroeconomic issues and provide input
for economic policy formulation through its analytical reviews
and research work. Clearly, superior analysis of economic
policies would be reflected in sounder macroeconomic management
by the central bank and, in turn, the evolving structure of
monetary and financial system would be more stable, and resilient
against internal and external shocks.
Key
Functions
The key functions of the Department include:
•
To write SBP’s Annual and Quarterly Reports on state
of the economy, in accordance with the statutory provisions
of the State bank of Pakistan Act, 1956. There are three quarterly
reports and one annual report during a business year. These
reports help in developing a better public understanding of
the interaction between monetary and other macroeconomic policies
and their impact on the overall growth of the economy.
• To put out monthly Inflation Monitor that contains
detailed analytical charts and tables on prices (both in domestic
and global markets). The objective of this document is to
create awareness about the inflation process so that the general
public is able to form an independent outlook for the emerging
price situation.
• To maintain and provide reliable, consistent and up-to-date
information on major macroeconomic variables to the senior
management.
• To contribute in the empirical research for the SBP.
Organizational
Structure
The Department has four Divisions with the following brief
description of the functions:
1.
Real Sector Division
The Division is responsible for analyzing developments in
the agriculture, industry, and services sectors. This Division
also regularly monitors trends in savings and investment,
and their impact on overall economy.
2.
External Division
This Division analyzes developments and policy changes in
the external sector, exploring their linkages with economic
growth and other macro variables. In particular, this Division
monitors trends in balance of payments position, foreign trade,
external debt, exchange rate and foreign exchange reserves.
3.
Monetary and Fiscal Division
This Division assesses the developments taking place in monetary,
financial and fiscal sectors, along with their linkages with
economic growth. Further, this Division analyzes federal,
provincial and consolidated budget and consolidates the domestic
debt of Pakistan administered by the State Bank of Pakistan
and CDNS.
4.
Prices and Socioeconomic Division
This Division is responsible for analyzing price trends both
in domestic and global markets. This Division also evaluates
macroeconomic, structural and social policies, and their impact
on economic growth and human development in the country.
