ISLAMABAD: The federal government has appointed former governor State Bank of Pakistan (SBP) Ashraf Mahmood Wathra as chairman of the board of directors of the National Bank of Pakistan (NBP) for a term of three years.
The government also appointed Nasim Ahmed and Ali Syed as directors of the Board of Directors of the NBP.
A notification to this effect issued by the external finance wing of the Finance Division noted that in exercise of powers conferred under section 11(3) (a) of the Banks (Nationalization) Act 1974, the federal government is pleased to appoint Chairman and Directors on the Board of Directors of NBP for a term of three years’ subject to clearance of fit and proper test criteria of the SBP.
The notification further stated that in addition to this, Additional Finance Secretary (IF), Finance Division would be the ex-officio Director on the Board of NBP.
On December 28, 2022, the Finance Ministry after the authorisation of Finance Minister Ishaq Dar had moved a summary to the Prime Minister’s Office for the premier approval before placing it to the federal cabinet meeting.
The summary read that as per the Banks (Nationalization) Act, 1974, a bank would have a Board of Directors consisting of a president who shall be the chief executive and no less than five and not more than seven other members as well as a chairman of the board.
The law provides for the appointment of the chairman, the president and other members of the board of a bank by the federal government, in consultation with the SBP for a term of three years.
The Board of NBP is dysfunctional since April 16, 2022, due to less than the minimum required five directors on the board. There were five positions – chairman and four directors currently vacant on the board up till now.
Copyright Business Recorder, 2023