Cabinet Defers SBP Amendment Bill for Review: Concerns Over Dual National Appointments
Prime Minister Shehbaz Sharif has instructed the Cabinet Division to consult Minister of State for Finance, Ali Pervaiz Malik, on the SBP Amendment Bill. This decision comes after concerns raised by Malik when he felt excluded from discussions about the proposal to amend the State Bank of Pakistan (SBP) Act. The government had initially planned to approve the bill. It will allow dual nationals to hold top positions at the central bank.
The finance ministry’s proposal included several key changes to the SBP Act. Most notably, it suggested lifting the restriction on dual nationals serving as the governor, deputy governor, or directors of the SBP. Currently, Section 13 of the SBP Act disqualifies dual nationals from these roles. The finance ministry argued that such a change would help bring in expertise from the global pool of talent.
The federal cabinet deferred the SBP Amendment Bill after Malik raised concerns about being left out of discussions. He argued that, as the finance minister’s representative, they should have consulted him before presenting any summaries to the cabinet. Prime Minister Shehbaz Sharif took immediate action and instructed the Cabinet Division to ensure Malik’s involvement in all future discussions on economic matters.
This amendment comes after previous changes to the SBP Act in 2022, influenced by the International Monetary Fund (IMF). Recommendations of IMF led to the restriction on dual nationals, but the IMF did not specifically advise banning them from top central bank roles. Some cabinet members have expressed concerns that dual nationals might return to their countries of origin after their tenure. while others argue that subject matter experts should be allowed to serve, regardless of nationality.
Finance Minister Muhammad Aurangzeb, who renounced his Dutch nationality to serve in the current government, supported the idea of allowing dual nationals to serve at the SBP. He argued that allowing such individuals to hold positions would help attract the necessary expertise for the country’s economic growth.
The government is particularly keen on reappointing Dr. Inayat Husain, a dual national who recently completed his term as deputy governor. Dr. Husain, along with Dr. Saeed Ahmad, a former IMF adviser, are the leading candidates for two vacant deputy governor positions. However, their dual nationalities may present an issue under the current law.
The cabinet has decided to set up a committee to review the proposed changes before bringing them back for approval. Once the committee has completed its review, the government expects to finalize the bill. The proposed amendments could have a significant impact on the country’s financial and economic policies.
