KARACHI: Though the technicality of monetary policy is all Greek to the man on the street, there is an almost consensus among the masses that it is the collective responsibility of the government and the State Bank to control inflation. A large number of commoners who were approached frankly expressed their ignorance saying they didn’t bother to follow the SBP policy. There were some exceptions though who were critical of the central bank’s over the last decade or so.

A teacher of mathematics associated with a business institute requesting anonymity said that the State Bank’s actions since the Musharraf era facilitated access of only the affluent to bank money which resulted in a record high inflation of over 27 per cent. He also criticised the SBP for promoting consumer financing of luxury goods and introduction of credit cards that promote the idea of living beyond one’s means.

Zaeem Siddiqui, who works for a firm that verifies income estimation of bank loan applicants, said: “The State Bank should direct commercial banks to extend loans to productive sectors and launch credit schemes for those aspiring to set up small businesses and expansion of big industries. But it is strange that banks are parking huge sums in risk-free government papers for making easy profit.”

A retired government teacher in his late 60s, sitting outside a National Savings branch, regretted the fact that the profit rates on NSS had been brought down. He, however, blamed the SBP’s easy policy stance which, according to him, offered the Central Directorate of National Savings (CDNS) an excuse to reduce the profit rates without taking into account the miseries of the small-time investors.

Mansoor, a senior manager with a private firm, was critical of the common practice of banks charging high mark-up rates in “clear violation of the allowed margin” as they don’t get penalised by the watchdog. Depositors, he said, were left at the mercy of the banks.

Tameem Siddiqui, a government employee for the last over two decades, when asked what does he understand by monetary policy, he expressed his ignorance.

However he added that the monster of inflation had nullified the nominal increase in his salary and his family had not been able to fare better life economically.

Some unemployed individuals shared their ordeal as they went around looking to procure bank loans for setting up small businesses. “The harsh and tough conditions for securing small loans only discourage people. It is unethical that banks set terms and conditions which only favour them,” they said.

There were others who raised questions about the methodology the banks adopt for calculation and distribution of profits, arguing that the banks were “flourishing, but offering negative returns to the savers”. They said the SBP must also look into such areas.