APROPOS the letter (May 17) the State Bank of Pakistan would like to share its views on the issues highlighted in it. The practice of seniority-based promotions has long been abandoned by the bank. Elevation to the next level is based on required competencies for the position and potential of the employee where eligibility of an employee is determined by considering qualifications and past performance.

Similarly, the remuneration of employees based on the concept of basic pay and allowances has also been replaced since the late 1990s with the concept of monetised salary structure, following good market practices, where all allowances have been merged with the basic salary. Salary scales are defined at each grade level with a minimum and maximum of the range.

Regarding the increase in administrative expenditures, it must be recognised that over the years inflation affects such type of expenditures for every organisation, and the SBP is no exception.

It would be pertinent to mention that the federal government appoints board members in line with Section 9 (2) (c) of the SBP Act, 1956, which requires representation from all four provinces. Currently, Sindh is being represented in the central board.

Lastly, following the changes to organisational structure and its requirements, the SBP has been rationalising its assets and it is an ongoing process.

Abid Qamar

Chief Spokesman

State Bank of Pakistan

Karachi

Published in Dawn, May 27th, 2015

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