Economic Impact of Implementation of Prior Actions 39. Accountability: The proposed Bill states that the Governor shall submit an annual report to the Parliament regarding the achievement of the Banks’ objectives. Ideally, this should be twice a year. The Governor should present the report himself to the Finance Committees of the National Assembly and the Senate. Further, quarterly reports should be released by the SBP on the State of the Economy. 42. Distributable Earnings: There is need for a careful analysis of the proposed formula for quantification of distributable earning, especially that to be remitted to the Government of Pakistan. Access to SBP profits has been one of the largest sources of non-tax revenues to the Federal Government. The focus of the above comments is on policy issues and not on operational matters of the SBP. The amended SBP Act was passed without any changes by the National Assembly. 6.4 Summary i) A large number of items will be withdrawn from the 5 th , 6 th and 8 th Schedules of the Sales Tax Act, 1990. The expectation is that this will lead to annual revenues of almost Rs 350 billion. However, many of the sensitive items like fertilizer, pesticides, tractors, natural gas, LNG, LPG, etc., have been retained in the Schedules. Consequently, the impact on the price level will be much less. The maximum revenue that will be gen ­erated is likely to be less than Rs 220 billion. The IMF may ask for inclusion of more items if it is able to assess the quantum of revenue from the Finance(supplementary) Bill in its present form. ii) A large number of sectors will be negatively impacted by the rise in sales tax rates on outputs, inputs or machinery. This includes crop agriculture, livestock, fishing, elec ­tricity generation, telecommunication, information technology, retail trade, etc. The impact on households includes the rise in the sales tax on some food items, electronic goods, medicines, jewelry, sewing machines, personal computers, mobile phones(above$200 price), automobiles(above 860c) contraceptives, etc. The inci ­dence is likely to be higher on upper income households. iii) The State Bank of Pakistan(Amendment) bill envisages extreme autonomy for the Central Bank. There are serious issues related to the preamble, level of responsibility for regulation of the banking system, setting of the inflation target, prohibition of di ­rect Government borrowing, dissolution of the Fiscal and Monetary Policies Coordina ­tion Board, nature of Accountability to the Parliament and Formula for Distribution of profits to the single shareholder(the Government). 81