Dual nationals on top SBP slots: MoF faces resistance to proposed appointments

ISLAMABAD: The Finance Ministry is reportedly facing resistance from some Cabinet members regarding the proposed appointment of dual nationals to top positions at the State Bank of Pakistan (SBP), well-informed sources told Business Recorder.

On February 18, 2025, the Federal Cabinet was informed that SBP was established under the State Bank of Pakistan Act, 1956.

In response to evolving business needs, SBP proposed a set of amendments to the Act, which would enable the bank to take necessary steps for the issuance of digital currency, establish subsidiaries, and provide more flexibility in nominating Directors to its Board, Members of its Monetary Policy Committee (MPC), and Deputy Governors, among other changes.

Dual nationals in key SBP roles: Govt panel to assess implications

It was also noted that the SBP (Amendment) Bill 2024 had been referred to the Law and Justice Division for legal vetting. The vetted draft of the SBP (Amendment) Bill 2024, along with the Comparative Matrix and Statement of Objects, and Reasons, was shared with the Cabinet.

Under Rule 27 of the Rules of Business, 1973, in-principle approval from the Cabinet was required before submitting amendments to any law to the Cabinet Committee for Disposal of Legislative Cases (CCLC).

Accordingly, a summary for the Cabinet was initiated on October 31, 2024. In consideration of this, the Cabinet formed a Cabinet Committee to review the amendment and examine the implications of allowing dual nationals to hold sensitive positions in the central bank.

Furthermore, a meeting of the Cabinet Committee on the SBP (Amendment) Bill 2024 was held on January 2, 2025, where the Committee unanimously agreed to delete the existing clause/words “having dual nationality” in Section 13(a) of the SBP Act, 1956 (amended in 2022), subject to the disclosure of dual nationality.

In light of the foregoing, the Cabinet’s in-principle approval was sought to present the SBP (Amendment) Bill 2024 before the CCLC.

During the ensuing discussion, some Cabinet members agreed with the recommendations of the Cabinet Committee on SBP, while others disagreed, and opposed the inclusion of dual nationals on SBP’s board.

One Cabinet member proposed that, since important members of the Committee—namely the Deputy Prime Minister/Foreign Minister, Minister for Defence, and Minister for Planning, Development, and Special Initiatives—were absent, the summary be deferred.

After further discussion, the Cabinet decided to defer the decision on the proposal titled ‘State Bank of Pakistan (Amendment) Bill, 2024’, submitted by the Finance Division, due to the absence of the Minister for Defence and the Minister for Planning, Development, and Special Initiatives.

Copyright Business Recorder, 2025