ISLAMABAD: The government has decided, in principle, not to reappoint Governor State Bank of Pakistan (SBP) Dr Reza Baqir after the expiry of his term on May 4, 2022; however, the final decision in this regard would, in all probability, be taken by the PML-N Supremo Nawaz Sharif and former Finance Minister Ishaq Dar, both presently in London.

This was stated by a senior leader of the ruling Pakistan Muslim League-Nawaz (PML-N) on condition of anonymity. He said that some names are under consideration but their disclosure now may sabotage the process.

An official of the government said that the appointment of a retired bureaucrat as Governor State Bank of Pakistan (SBP) is unlikely due to age restrictions in the law. According to the SBP Act 2021 no person shall hold the office of the Governor or Deputy Governor after attaining the age of sixty-five years. He added the names of some bureaucrats, being cited as possible candidates for the position in the media, had retired a few years back and they are; therefore, ineligible for the office of Governor SBP age wise.

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As per SBP Act 2021, the Governor and the non-executive Directors shall be appointed by the President, upon the recommendation of the federal government, taking into account the eligibility and disqualification criteria laid down in this Act. The Governor, the Deputy Governor, the non- executive Directors shall be appointed for a term of five years and shall be eligible for re-appointment only for one term of five years.

There was speculation soon after the new government took oath that reappointment of Governor SBP would be unlikely and the government would appoint a ‘loyalist’ at this critical post.

Copyright Business Recorder, 2022