SBP amendment bill won’t come into effect for governor Reza Baqir, top brass

ISLAMABAD: The criticism launched by the opposition parties against the State Bank of Pakistan (SBP) Amendment Bill 2021 has proven false as the amended law will not come into effort on the current central bank’s governor Dr Reza Baqir and top brass.

The opposition leaders had alleged that Pakistan Tehreek-e-Insaf (PTI) led federal government wanted to sell the central bank to the International Monetary Fund (IMF) in the name of granting autonomy to the State Bank of Pakistan (SBP). They also alleged that the central bank was also seized by the IMF by sending its economist Dr Reza Baqir.

However, the fact was contrary to the allegations as the amended law stated that the commencement of the SBP amendment bill will have no retrospective effect on the existing three-year tenure of the current governor, his deputies and non-executive directors.

It added that the bill proposes a 5 years tenure for whoever gets appointed after this team.

President Arif Alvi had approved the appointment of Dr Reza Baqir, a long-time economist with the International Monetary Fund (IMF), as the SBP governor of the State Bank of Pakistan (SBP) for a period of three years in May 2019.

On January 10, Finance Minister Shaukat Tarin had told the National Assembly’s Standing Committee on Finance that the government will retain control over the State Bank of Pakistan (SBP) despite its autonomous status and rubbished the impression that the amended law will curtail powers of the government.

He had said that the federal government will have powers to nominate names of the board of directors of the central bank and will also have the power to approve their appointment.

On January 13, the National Assembly had passed the SBP Amendment Bill amid the protests of the opposition lawmakers.