The Ministry of Finance has prepared two summaries for Prime Minister Shehbaz Sharif, advising that he either give State Bank Governor Dr. Reza Baqir a second five-year term or choose one of three nominees from a panel, which includes a top IMF official.
The ministry has refused to support a proposal from the Prime Minister’s Office to extend Baqir’s detention “until further instructions,” which is constitutionally impossible.
Under the modified statute, the State Bank of Pakistan (SBP) Act 1956 does not offer legal room for any term less than five years.
It will be illegal if the government decides to temporarily prolong Baqir’s tenure until November or any other time, according to sources.
Given the legal situation, the Ministry of Finance has prepared two separate summaries for the Prime Minister, with the final choice resting with him.
The prime minister will decide on the fate of the SBP governor, according to Finance Minister Miftah Ismail.
The Ministry of Finance has suggested Noor Ahmad, Pakistan’s Executive Director at the Asian Development Bank (ADB) and former federal secretary, as the next central bank governor, according to sources.
Aurangzeb Khan, President of Habib Bank Limited, and a senior IMF official are the other two members of the panel.
Separately, it has proposed that Baqir’s term be extended for another five years when his first term expires on May 4th.
To read our blog on “$2.8 billion remittances the highest amount ever received by Pakistan, SBP,” click here.
