What action would the State Bank of Pakistan take to implement a restrictive monetary policy?

Explanation

To adopt a tight monetary policy, the central bank typically sells government securities to reduce liquidity. However, option B indicates buying government securities, which actually increases money supply and is an expansionary measure. Therefore, the correct action for a restrictive policy would be option D, selling government securities. Since the correct answer key is option B, note that buying securities is an expansionary action, not a tight monetary policy step.