The coalition government led by PML-N decided not to extend the term of the governor of the State Bank of Pakistan (SBP), Reza Baqir as Finance Minister Miftah Ismail thanked the first for his services to the country on Tuesday.
Miftah tweeted from his official Twitter handle.
The Ministry of Finance had prepared two summaries for Premier Shehbaz Sharif, recommending either that the SBP Governor, Dr. Reza Baqir, be given a second five-year term or that one of the three names be selected from a panel, including a high-ranking official from the International Monetary Fund (IMF).
The ministry did not support a proposal from the Prime Minister’s Office that called for Baqir’s extension “until other orders”, which is legally impossible.
The 1956 law of the State Bank of Pakistan (SBP) does not stipulate a time limit of fewer than five years under the amended law.
If the government decides to temporarily extend Baqir’s mandate until November or at some other time, it will be considered illegal.
Sources said the Department of Finance had suggested the name of Noor Ahmad, Pakistan’s Executive Director in the Asian Development Bank (ADB) and former federal secretary, for being appointed governor of the central bank.
The other two names include Aurangzeb Khan, President of Habib Bank Limited, and a senior IMF official.
PML-N continued to be highly critical of Baqir’s policies and its lawmakers demanded an investigation into the 3.6 billion dollars of foreign money brought to Pakistan during the first year of the governor’s term.