ISLAMABAD: In the midst of chaos created by a united yet infuriated opposition, the government Wednesday passed “The State Bank of Pakistan Banking Services Corporation (Amendment) Bill, 2021,” aimed at optimising the central bank’s operational efficiency by bringing it in “conformity with the emerging operational needs”.
The much-awaited crucial bill, which had been passed by the National Assembly on June 10, 2021 but could not be passed from the upper house of the parliament within the constitutionally prescribed period of 90 days due to stiff resistance from the opposition the government could possibly face in the Senate.
However, the government wanted to pass the crucial bill at all costs, and finally managed to sail through the bill from the joint sitting of the parliament, in order to strengthen the mechanism of the top-level appointments in state-run financial banking regulator.
The opposition benches seemed visibly perturbed as Pakistan People’s Party (PPP) chairman Bilawal Bhutto-Zardari, while speaking on a point of order, termed the move a willful attempt by the government to surrender the SBP to the International Monetary Fund (IMF), which neither opposition nor the people of Pakistan will accept.
“We’ll challenge this in the court of law as this is not acceptable. How can a state-run institution be made unanswerable to the parliament,” he lamented.
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According to the statement of objects and reasons, a new sub-section has been introduced for the appointment of an acting managing director within a period of 60 days – from the date of vacancy, provided that the managing director will be appointed within a period of three months from the date of the occurrence of vacancy.
It says that the power of the board of directors to appoint external auditors has been proposed in line with good governance.
“An enabling clause on creation of subsidiaries by SBP-Banking Services Corporation (SBP-BSC) with the approval of board and SBP under the ordinance has been introduced for operational efficiency,” it added.
It further says that amendments have been proposed to exempt the gratuity and provident fund of employees of the bank from attachment as already provided for, in case of pensioners to make the ordinance consistent with the existing compensation benefits.
In order to provide adequate protection to the bank and its officers for actions taken in good faith, amendments have been proposed, it said, adding a new section has been proposed to legally protect the proceedings of the board and its committees from any questions arising only on the grounds of any vacancy or any defect in the constitution of the board.
Copyright Business Recorder, 2021
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