 Bismillahir Rahmanir Raheem and As-Salaamu Alaykum everyone. Welcome back to Corporate Governance. Well, we were talking about economic policy and one of the very important elements within economic policy is the monetary policy. We hear about this policy all the time. It's in the news, it's in newspapers, it's in talk shows and it's all around. Again, as citizens, as businesses, as management, as board of directors or as any stakeholder, the monetary policy has a direct implication on our lives and our businesses and on economy as a whole. We also see that the monetary policy, definitely the finance department, the finance ministry at the national level and the finance departments at the provincial level have a very important stake and also a very important role in it. But the real player in the monetary policy is the state bank of Pakistan and that is the real backbone of any monetary policy of any particular country, is their state bank or their Federal Reserve because they are the ones who are regulating and who are controlling the monetary policy. And definitely the policy is then developed and approved by the Parliament for its implementation across the board. Now, when we are talking about economic policy, then what we see is that the basic goals of the monetary policy are maximum feasible output and that means we are trying to increase the output of our products, of our industries, of our different sectors, a high rate of growth. We talked about this in the economic policy and again, trying to reach a double figure so that there is more employment and that would lead to more employment, a price stability which again we talked in the last module and that was there has to be a control on inflation, a greater equity in the distribution of income and wealth and then favorable balance of payment. So, these things we did talk about in the economic policy also because they are very important for the economic policy but when we are subdividing the economic policy and we are talking about the monetary policy, then these are the things or elements which are very important for the monetary policy and what we see is that right now in Pakistan we have this challenge of balance of payments and therefore we have to go to institutions like the IMF or to different friendly countries or to different international financial institutions and talk about getting loans so that we do not default on our balance of payments. Then again, like I was mentioning that the importance of controlling inflation because if there is a inflatory process which we see right now in the country then things become terribly bad for the common citizen and life becomes miserable and what we see is that then the purchasing power becomes less or the purchasing power index or the purchasing power parity index tends to be compromised at the end of the day and then another factor is that we see that the rate of interest for loans also tends to become higher and therefore the cash flow tends to be negatively affected and that would result in businesses being diminished in their outreach, in their production and in their profitability and that tends to then affect employability as a whole and then create a bigger gap in the distribution of wealth and make it more inequitable whereas any monetary or economic policy should focus on trying to create equity and minimizing the gap between the rich and poor and try to alleviate poverty to the best possible way it can. So again, these different mechanisms and these different elements tend to contribute in the monetary policy as a whole and it is important that we tend to protect all of them. The ideal policy is the policy of long-run neutral money which involves maximum feasible output and price stability in the long run. The monetary authority uses various instruments to control the supply of money. So again what we see is that the state bank through the banks tends to control the outflow of money because it doesn't want to have an inflation return and therefore through the control of money it tries to promote what we call savings and therefore when we are talking about index points going up it can be in what we call in the interest rate it can go up so that people tend to deposit more money and therefore the cash flow tends to be minimized. So therefore the role of the state bank is very important. We also talk about the different instruments such as instruments of credit control which I was just talking about the instruments can be divided into two categories. One is quantitative and the other is qualitative. So again what we see is that these different elements tend to play a role in bringing about stability within the overall economy of a particular country. Now when we are talking about the quantitative approach then we're talking about the credit control vis-a-vis different banks and that again becomes very important because the state bank through its monetary policy is regulating all of the financial institutions within a country. Then we talk about open market operations and thirdly we're talking about changes in these statutory reserve requirements which again tend to restrict the different banks. For example first we used to have a very open automobile leasing or financing policy but now that has been limited why because now the amount is 3 million and secondly we see that the interest rate has also gone up and there is a limitation of the banks of how they can fund a particular vehicle. So many vehicles have been brought out of the ambit. We see that there is now a upper limit of financing and thirdly we see that the interest rates have also gone up so that is how things are done in a quantitative way basically vis-a-vis the monetary policy. Then we also see ladies and gentlemen that there are different methods in which we see that there is the bank when we're talking about the bank policy rate. So again what is that rate just like I was talking about the open market operations how are they controlled, how are the different players controlled, how is the formal and the informal market balanced out. We talk about enhancing cash reserve requirements which again make sure that no banks tend to default. There is a statutory liquidity ratio which has to be maintained by the different banks and then there is a selective credit control again where and who to whom and when and where are the banks basically lending. So through these different elements through these different mechanisms and through these different tools the monetary policy basically contributes towards the economic policy and ensures that there is monetary stability within the country. Thank you so much.