Institutional restructuring: Govt adopts Ishrat’s reform blueprint

ISLAMABAD: The government has adopted former State Bank of Pakistan (SBP) governor Dr Ishrat Hussain’s institutional reform blueprint as the foundation of its restructuring agenda, while acknowledging that implementation of the proposed changes across federal ministries and departments will take place in phases.

Finance Minister Muhammad Aurangzeb disclosed this on Tuesday while addressing a Sustainable Development Policy Institute (SDPI) ceremony where Dr Ishrat was presented with a Lifetime Achievement Award, saying the government was building on his recommendations rather than discarding previous work and starting from scratch.

Aurangzeb said he had personally approached Dr Ishrat to obtain his institutional reforms report and subsequently adopted it as the basis of the government’s restructuring programme. However, the recommendations were being implemented gradually because of the scale of the proposed reforms and the number of ministries and attached departments involved. “The groundwork was done by you, and we are now leveraging it. However, execution and implementation are taking a little more time,” he told Dr Ishrat, whom he described as a mentor whose integrity, humility and lifetime of public service continued to inspire him.

State Bank Governor Jameel Ahmad credited Dr Ishrat with transforming Pakistan’s central bank during his six-year tenure, which began in December 1999 when the country was grappling with international isolation, economic sanctions following the 1998 nuclear tests and a severe balance-of-payments crisis.

He said Dr Ishrat prepared a comprehensive strategy paper within months of assuming office and translated his vision into an ambitious programme of institutional reforms, strengthening the SBP’s autonomy, professional capacity and regulatory framework.

Ahmad said Dr Ishrat’s emphasis on merit, professional development and continuous learning helped build a generation of central bankers who subsequently assumed leadership positions in the financial sector.

He also highlighted Dr Ishrat’s foresight in recognising the importance of technology nearly three decades ago, recalling the establishment of an IT committee to modernise the central bank and the wider banking industry.

Dr Ishrat, in his address, urged young Pakistanis to invest in education, embrace resilience and dedicate their professional lives to public service, saying difficult beginnings should never determine an individual’s destination.

“Your beginnings need not determine your destination,” he said, recounting how he overcame academic difficulties and social exclusion through perseverance and the guidance of dedicated teachers. He said he had visited 79 universities across Pakistan after retirement to motivate students to overcome economic uncertainty, shrinking opportunities and challenges posed by artificial intelligence.

Recalling his 20-year career at the World Bank, Dr Ishrat highlighted his work on economic reforms in Ghana, international assistance for post-conflict Tajikistan and advice to Azerbaijan on establishing a sovereign wealth fund. He said Azerbaijan’s state oil fund had accumulated around USD 75 billion in assets, demonstrating the importance of preserving resource revenues for future generations.

Former federal minister and adviser on commerce Abdul Razak Dawood also praised Dr Ishrat’s transformation of the State Bank, describing the Lifetime Achievement Award as well-deserved recognition of his contributions.

Habib Bank Limited Chairman Sultan Ali Allana described Dr Ishrat as an institution in himself, highlighting his unusual combination of civil service experience and international financial expertise. Former secretary to the prime minister Nargis Sethi and Dean Emeritus and Professor at Boston University’s Pardee School of Global Studies, Dr Adil Najam also spoke.

Copyright Business Recorder, 2026