<?xml version="1.0" encoding="UTF-8"?>
<rss xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" version="2.0"><channel>
                        <title>The Express Tribune</title>
                        <atom:link href="https://tribune.com.pk/feed/sbpgovernor" rel="self" type="application/rss+xml"/>
                        <link>https://tribune.com.pk/feed/sbpgovernor</link>
                        <description>The Express Tribune keeps you up to date with all the latest happenings from Pakistan and across the world!</description>
                        <lastBuildDate>Wed, 10 Jun 26 04:28:59 +0500</lastBuildDate>
                        <language>en-US</language>
                        <sy:updatePeriod>hourly</sy:updatePeriod>
                        <sy:updateFrequency>1</sy:updateFrequency>
                        <generator>https://laravel.com/</generator><item>
			<title>SBP hints at new wave of inflation</title>
			<link>https://tribune.com.pk/story/2329775/sbp-hints-at-new-wave-of-inflation</link>
			<comments>https://tribune.com.pk/story/2329775/sbp-hints-at-new-wave-of-inflation#comments</comments>
			<pubDate>Tue, 16 Nov 21 20:13:04 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2329775</guid>
			<description>
				<![CDATA[Deputy governor says more measures may be taken to slow down economy]]>
			</description>
			<content:encoded>
				<![CDATA[State Bank of Pakistan (SBP) Deputy Governor Dr Inayat Hussain on Tuesday hinted that more measures may be taken to slow down the economy while also pointing to a fresh round of inflation due to rupee depreciation.

&ldquo;There is a possibility that we may have to take more measures to curb demand,&rdquo; said the deputy governor while giving a briefing to the National Assembly Standing Committee on Finance about high inflation in the country.

The deputy governor was responding to a question raised by Pakistan Muslim League-Nawaz (PML-N) MNA Dr Ayesha Ghaus Pasha, who had inquired whether the central bank was planning to increase interest rate to contain inflation.

The central bank has already increased the cash margin requirement, taken measures to discourage consumer financing and increased the cash reserve requirement for banks to cool down the economy. The projected 4-5% economic growth has again exposed fault lines of the economy, which is being pushed through borrowing.

Pasha said that increasing the cash reserve requirement by one percentage point would not help to slow down the economy as its impact would be nominal.

However, the deputy governor said that &ldquo;going forward, the import pressure will subside, it is our expectation and it may or may not be true.&rdquo;

Hussain made the statement about taking more steps to slow down the economy just two hours before the central bank brought forward the date of monetary policy committee (MPC) meeting by a week.

The MPC will now convene on Friday (November 19) compared to the previously announced date of November 26.

The SBP said that the MPC meeting had been brought forward in light of recent unforeseen developments that had affected the outlook for inflation and the balance of payments, and to help ease the uncertainty about monetary settings prevailing in the market.

Read&nbsp;SBP digitises regulatory approval process

However, it is widely believed that the central bank has called the MPC meeting early to meet a condition of the International Monetary Fund (IMF) to increase interest rate.

Responding to another question, the deputy governor said that the impact of rupee devaluation against the US dollar on inflation would be visible in two to six months but the leadership could take some measures to contain the inflation.

&ldquo;The Monetary Policy Committee can also take appropriate actions and similarly the government can take some measures to contain inflation,&rdquo; said Hussain.

The inflation is already high as the Consumer Price Index (CPI)-based inflation reading stood at 9.2% in October compared to a year ago. The Sensitive Price Index (SPI), which captures price trends of 51 essential items, reached 17.4% last week over the same period of last year.

Led by Pakistan Tehreek-e-Insaf&rsquo;s Faizullah Kamoka, the standing committee on finance had also called Finance Secretary Yousaf Khan for a briefing on inflation but the secretary sought postponement of the briefing on both issues, ie inflation and IMF programme.

The committee decided to call the SBP governor in the next meeting.

&ldquo;The SBP Amendment Bill has not yet been passed by parliament and I assume that the SBP governor is still answerable to us,&rdquo; said Ahsan Iqbal, a member of the committee from the opposition and former planning minister.

The deputy governor said that from July 1 to November 12, 2021, the rupee shed its value by 10.3% against the greenback.

Read more&nbsp;Govt trapped into accepting SBP bill

The rupee lost some of its value due to the mismatch between supply and demand and uncertainty in the market. Both the trade deficit and current account deficit were higher in the first quarter of current fiscal year, which was also a reflection of the demand and supply situation in the foreign exchange market, said the deputy governor.

Replying to another question, Hussain said that the central bank was of the view that the rupee was undervalued.

Iqbal said that despite over 42% currency depreciation, exports had not picked up in the past three years. &ldquo;The myth that exports are sensitive to the exchange rate has proved wrong during the past three years,&rdquo; he said.

Hussain said that there was a very strong link between the exchange rate and exports, which was why countries kept their currencies undervalued to enjoy a competitive advantage.

However, the exchange rate alone could not help and other things like business facilitation were also important for increase in exports, he added.

The PML-N government had been criticised for artificially sustaining the value of the rupee, however, exports during the last year of the government increased by 17%, said Iqbal.

Published in The Express Tribune, November 17th, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/81637093394-1/81637093394-1.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Transparency needed</title>
			<link>https://tribune.com.pk/story/1011792/transparency-needed</link>
			<comments>https://tribune.com.pk/story/1011792/transparency-needed#comments</comments>
			<pubDate>Thu, 17 Dec 15 18:00:28 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=1011792</guid>
			<description>
				<![CDATA[No one denies the potential of the CPEC to be a game changer for an investment-starved Pakistan]]>
			</description>
			<content:encoded>
				<![CDATA[When there are billions of dollars involved in any project, there are bound to be concerns on how the money would be used, especially in a country like Pakistan where investment is on the lower side. The China-Pakistan Economic Corridor (CPEC) is said to be a $46-billion project, which is more than three times the reserves held by the State Bank of Pakistan. No one denies the potential of the CPEC to be a game changer for an investment-starved Pakistan. The corridor is slated to run along many underdeveloped areas and can provide employment for thousands. But when the governor of the country’s central bank says he is unaware of the debt and equity components of the billions that are to be invested in the CPEC, eyebrows are bound to be raised. Then comes the news of the government giving the go-ahead to CPEC projects at a higher cost than was originally planned, and more scepticism follows.

The Central Development Working Party, which usually does not act in haste in giving a thumbs-up to projects, swiftly cleared three CPEC-related infrastructure projects for the final approval of the Executive Committee of National Economic Council. It is not the clearance, but the cost at which these projects are getting the green light that is causing discomfort. On the one hand, the government is citing low tax revenue and imposing additional taxes to meet the shortfall; on the other hand, it continues to spend a bit too lavishly in other areas. Pressure from investors and contractors could be one reason for this, but the government needs to realise that the CPEC isn’t important just for Pakistan. China is slated to gain sufficiently from the project too, and this is not a favour we are being bestowed with. Why, then, is there a lack of a competitive bidding process, with awards being contracted to companies of just one country? It is time that the government revealed details of the share of debt and equity components of the CPEC. The last thing we need is billions of dollars of supposed investment leading to piles of debt with the returns on projects restricted to a handful. There is a clear need for more transparency here.

Published in The Express Tribune, December 18th,  2015.

Like Opinion &amp; Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/1011792-CPECstorybyPeercopyxx-1450375081/1011792-CPECstorybyPeercopyxx-1450375081.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>SBP: New governor to push for greater central bank independence</title>
			<link>https://tribune.com.pk/story/283724/state-bank-of-pakistan-new-governor-to-push-for-greater-central-bank-independence</link>
			<comments>https://tribune.com.pk/story/283724/state-bank-of-pakistan-new-governor-to-push-for-greater-central-bank-independence#comments</comments>
			<pubDate>Fri, 28 Oct 11 01:59:12 +0500</pubDate>
			<dc:creator>
				<![CDATA[farooq.tirmizi]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=283724</guid>
			<description>
				<![CDATA[Says intere­st rate cuts earlie­r in the month were not made under politi­cal pressu­re.]]>
			</description>
			<content:encoded>
				<![CDATA[Newly-appointed State Bank Governor Yaseen Anwar plans on working closely with the Senate to sanctify into law the SBP’s independence – something it has worked to establish in practice over the past decade.


The State Bank (Amendment) Bill – which would reduce the role of the finance ministry in overseeing the central bank and abolish the government’s right to supersede the SBP’s decisions – was unanimously passed in the National Assembly on November 4, 2010.

However, it very quickly ran aground in the Senate finance committee, where legislators from both sides of the aisle objected to the degree of independence being sought by the SBP. The senators objected in particular to the clauses that would place legal restrictions on government borrowing from the central bank, as well as the abolition of the authority to supersede central bank decisions.

Anwar hopes to get the upper house of parliament to reconsider. “I hope to have some of those clauses reinstated,” he said in an interview with The Express Tribune.

The governor, however, was quick to dispel notions that the central bank was being subjected to political pressure, particularly with respect to the October 4 cut in the discount rate (the interest rate at which commercial banks can borrow from the SBP’s discount window).

The central bank caught the market by surprise by slashing the benchmark rate from 14% to 12.5%. There had been speculation in many newspapers that the cut – which would reduce the cost of borrowing throughout the economy – was made under pressure from the government. Anwar, however, explained the decision-making process.

(Read: Explaining the rate cut - A case of contrasting styles)

“The monetary policy was first discussed in the internal monetary policy committee of the State Bank, which includes leading economists,” said the governor. “The consensus that eventually developed was of around a 1.5% cut. That recommendation was then sent to the Central Board, which then approved the decision.”

Anwar also said that the government plans on restricting borrowing from the central bank to a minimum and maintain fiscal discipline. “Even though we have exited the IMF programme, we will continue to operate as though we are under that programme.”

That includes, he said, a borrowing limit of Rs1,155 billion for the federal government, much of which comes from commercial banks that buy treasury bills.

The Wharton-educated governor was appointed to his current position on October 19, after having served twice as the acting governor during the two periods the government’s previous appointees resigned their post prematurely.

He had been serving since March 2007 as the deputy governor, and the head of the Banking Services Corporation, a wholly-owned subsidiary of the central bank that accounts for nearly 80% of its 6,000-man workforce. The BSC serves as the operational arm of the State Bank. His experience in leading that division, Anwar feels, helped give him an edge over his potential rivals for the job.

“When I was appointed and started working as governor, I didn’t miss a beat,” said Anwar. “I knew the history of every file I looked at. That continuity meant that we don’t lose out on stability.”

Yet one gets the impression that the appointment comes to Anwar as something of a relief. “When I was serving in both roles – as acting governor as well as deputy governor – I was working 18-hour days.”

“I was only taking everyday decisions as acting governor, since it would be unfair to any person who would eventually be made governor. Now that I have the job, I can take longer-term decisions,” he said.


Published in The Express Tribune, October 28th, 2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/283724-YaseenAnwarPH_1735627004/283724-YaseenAnwarPH_1735627004.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>New SBP governor has tough days ahead</title>
			<link>https://tribune.com.pk/story/277281/new-sbp-governor-has-tough-days-ahead</link>
			<comments>https://tribune.com.pk/story/277281/new-sbp-governor-has-tough-days-ahead#comments</comments>
			<pubDate>Wed, 19 Oct 11 11:06:52 +0500</pubDate>
			<dc:creator>
				<![CDATA[reuters]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=277281</guid>
			<description>
				<![CDATA[Analysts and former government officials fear he may not be the best central bank governor to fight challenges.]]>
			</description>
			<content:encoded>
				<![CDATA[Yaseen Anwar may be the chosen one by Pakistan authorities, but analysts and former government officials fear he may not be the best central bank governor to fight challenges faced by the fragile south asian economy.

(Read more: Yaseen Anwar appointed SBP governor)

The articulate, soft-spoken former banker has served as deputy governor of the State Bank of Pakistan (SBP) since March 2007 and is seen by some as vulnerable to government pressures, especially after the recent aggressive and unexpected rate cuts.

Since July, the key policy rate has been slashed by 200 basis points to 12 percent, leaving analysts puzzled and concerned that the move, which the bank said was aimed at spurring growth, may end up widening the deficit and spurring inflation in the country.

The cuts have also led some analysts to question the bank's independence, as the main beneficiary of lower rates would be President Asif Zardari's cash-strapped government which would benefit immensely from fiscal relief to help serve its debt.

Anwar, a dual national who holds a US citizenship, studied economics and political science at the Wharton School of Business in Pennsylvania.

More a global citizen, he has about 33 years of banking experience across cities such as New York, London and Paris, and his resume includes American banks like JP Morgan, Bank of America and Merrill Lynch.

"What you need at the central bank is a strong macro-economist and not a banker," said Ashfaque Hasan Khan, a former government advisor and now the director general of the NUST Business School in Islamabad.

"Anwar's elevation as the central bank governor is unlikely to have a meaningful impact on the economy. In fact, it would further weaken the central bank and make it more vulnerable to political pressures."

A permanent tenure

Anwar is the fourth central bank chief in three years since Zardari took over as president, highlighting the politically unstable country's difficulties in attracting and retaining qualified individuals in government service.

This would be his first permanent tenure on the job, after two interim stints in one year.

Anwar was acting governor for three months after Salim Raza resigned, citing personal reasons, in June 2010, and then again after mid-July this year when Shahid Kardar resigned, citing "differences of opinion on policy actions".

In his capacity as acting chief and deputy governor, Anwar is no complete stranger to the central bank, unlike past few governors.

However, critics maintain his credentials are not enough to lead the central bank of a debt-laden country that's struggling to repay foreign loans and keep its economy afloat.

Settling into debt

In 2008, Pakistan and the International Monetary Fund agreed on a 3-year package loan of $11 billion. But the programme was halted in 2010 because of slow implementation of fiscal reforms, and only $8 billion had so far been disbursed.

The programme ended on Sept. 30 and Pakistan opted not to ask for a new loan.

While Anwar has many critics, there are some that see his appointment as a move towards stability.

"We don't have too much time at our hands, and at least Anwar would not take six months to settle in," said the top executive of a bank, requesting not to be named.

"At least he is a clean person and knows the institution. He will do whatever he has to straight away and is unlikely to have much of a conflict with the government, which I think is a good sign and is needed at this crucial time."]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/277281-yaseenanwar-1319022264/277281-yaseenanwar-1319022264.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>State Bank of Pakistan: Yaseen Anwar appointed as governor</title>
			<link>https://tribune.com.pk/story/277121/state-bank-of-pakistan-acting-governor-poised-to-take-over-as-chief</link>
			<comments>https://tribune.com.pk/story/277121/state-bank-of-pakistan-acting-governor-poised-to-take-over-as-chief#comments</comments>
			<pubDate>Wed, 19 Oct 11 00:42:21 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=277121</guid>
			<description>
				<![CDATA[Experts viewing the appointment as a successful attempt to whitewash financial affairs of the present government.]]>
			</description>
			<content:encoded>
				<![CDATA[The government has appointed the acting governor of State Bank of Pakistan Yasin Anwar as the central bank’s chief.

Three names were considered for the post including Anwar, Ali Raza and Dr Shamshad Akhtar.

The government was required to appoint a new governor before October 18 as Anwar’s tenure as interim head of the body ended yesterday.

The post had been vacant since Shahid Hafeez Kardar resigned from the post on July 18.

Updated from the print story (below) 

Acting governor poised to take over as chief

In the race to the top at the central bank, the insider appears to have won.

The federal government has decided to appoint a dual nationality holder, Yaseen Anwar, as State Bank governor, informed sources told The Express Tribune.

Currently serving as the acting governor of the SBP, Anwar has beaten two other contenders, National Bank of Pakistan chairman Ali Raza and former SBP governor Shamshad Akhtar, and would shortly be notified the 17th governor of the central bank, and the fourth governor in three-and-a-half years of the incumbent government.

News of Anwar’s prospective appointment elicited a mixed reaction, with some experts viewing it as a successful attempt to whitewash financial affairs of the present government. As acting governor since July 18, Anwar has reduced the key interest rate by 2% – a move widely interpreted as an attempt to appease industrialists as general elections approach.

Anwar would succeed Shahid Hafiz Kardar, who resigned on July 15 after developing “serious policy differences” with the federal government.

(Read: Resignation of SBP governor)

Anwar is a US citizen and is a graduate of the Wharton business school at the University of Pennsylvania. He was appointed deputy governor of SBP in 2007 and has 33 years of  international banking experience. Prior to his appointment at the SBP, Anwar was associated with Kraken Financial Group, London as its executive vice-president since 2003.

“Yaseen Anwar is professionally pretty good and as deputy governor has done some good job,” said former finance minister Shaukat Tarin.

While some appreciate his professional attributes, others, including those who have worked closely with him, are sceptic, fearing that the central bank would further lose its autonomy to the finance ministry.

“Anwar is a typical banker,” said Dr Ashfaque Hasan Khan, a renowned economist. “If appointed, he may not meaningfully contribute in economic policy making and the institution of the SBP would further weaken, and could easily be used for political purposes.”

Anwar’s colleagues add that he is reserved, and is not an avid contributor at meetings. They quote a recent meeting with the International Monetary Fund in Washington where he was unable to present the country’s case.

‘Weak’ governor

Many viewed SBP’s latest decision to cut the policy rate by 1.5% in one go as an evidence of leverage the federal government would enjoy over a “weak governor.” Earlier, under Anwar, the central bank had reduced the discount rate by 0.5%.

(Read: Explaining the rate cut – A case of contrasting styles)

“A 1.5% cut in policy rate was too big a decision”, said Dr Hafiz Pasha, the former finance minister who served on the Monetary Policy Committee of the SBP until May. The committee has, since then, ceased to exist, closing the only window available to macroeconomists to participate in monetary policy formulation.

After the parliament’s refusal to provide a legal base to the Monetary Committee, the bank’s Central Board of Directors has been revived, dominated by the government and comprising businessmen who are dwarfed by the federal finance secretary.

None of the Board’s private members at present are credible macroeconomists, a demand reiterated by independent experts.

(Read: A gamble with the economy)

Sources fear that Anwar could be used by the presidency to whitewash its financial profligacy. For the past several months, the federal government has successfully blocked a move to discuss the accounts of the National Bank of Pakistan. According to unconfirmed reports, the NBP extended billions of rupees worth of loans on substandard collaterals, on political grounds, and the central bank failed to play its regulatory role.

Published in The Express Tribune, October 19th, 2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/277121-GovernorYaseenAnwar-1318983386/277121-GovernorYaseenAnwar-1318983386.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>‘Vigilance needed for financial system’s safety’</title>
			<link>https://tribune.com.pk/story/276829/%e2%80%98vigilance-needed-for-financial-system%e2%80%99s-safety%e2%80%99</link>
			<comments>https://tribune.com.pk/story/276829/%e2%80%98vigilance-needed-for-financial-system%e2%80%99s-safety%e2%80%99#comments</comments>
			<pubDate>Tue, 18 Oct 11 21:30:15 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=276829</guid>
			<description>
				<![CDATA[Deployment of IT has helped attain efficiency, but also increased risks: SBP.]]>
			</description>
			<content:encoded>
				<![CDATA[State Bank of Pakistan (SBP) Deputy Governor Muhammad Kamran Shehzad has said that in view of the critical importance of information technology for banking and financial sectors, there is a need to exercise constant vigilance for the safety of the financial system.

Speaking at the 7th International Information Security Conference (InfoSec 2011) on Tuesday, he said that structured, well-defined and documented security policies, standards and guidelines are the cornerstones for good information system security.

He said that each institution is required to define, document, communicate, implement and audit information security to ensure confidentiality, integrity and timely availability of information.

He said that the deployment of information technology in financial institutions has helped in attaining better systemic efficiency while at the same time introduced new areas of risk and threats apart from the risk inherent in the financial activities.

Published in The Express Tribune, October 19th, 2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/276829-KSE-1318973062/276829-KSE-1318973062.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Deadline passes, govt fails to appoint SBP governor</title>
			<link>https://tribune.com.pk/story/276438/deadline-passes-govt-fails-to-appoint-sbp-governor</link>
			<comments>https://tribune.com.pk/story/276438/deadline-passes-govt-fails-to-appoint-sbp-governor#comments</comments>
			<pubDate>Tue, 18 Oct 11 00:20:13 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=276438</guid>
			<description>
				<![CDATA[Three candidates vying for the job, along with a fourth ‘dark horse’.]]>
			</description>
			<content:encoded>
				<![CDATA[The deadline for appointing a governor of the State Bank of Pakistan expired on Monday amidst rumours that the three leading contenders for the position might be passed over in favour of a dark horse candidate.


According to the State Bank Act of 1956, the government is mandated to appoint a new governor “within a period not exceeding three months.” Prime Minister Yousaf Raza Gilani had accepted the previous incumbent Shahid Kardar’s resignation on July 15.

(Read: Resignation of SBP governor)

“The SBP governor’s appointment was not finalised on Monday. We have to wait for some more days,” said Farhatullah Babar, spokesperson for President Asif Ali Zardari.

Babar tried to justify the violation of the law and said that clause 54B of the SBP Act empowers the government to issue appropriate orders for the removal of any difficulty that may arise in the implementation of the law. The government, however, had not issued any such orders till the filing of this story.

Legal experts argue that even though the government had violated the law, there would be no repercussions. “There is no penal provision [in the act] except that the government is violating an act  of the Parliament,” said Ali Zafar, an Islamabad-based corporate lawyer.

A four-way race?

The three leading contenders for the position are acting governor Yaseen Anwar, former SBP governor Shamshad Akhtar and National Bank of Pakistan Chairman Ali Raza. However, a senior government official said that there was a fourth ‘dark horse’ being considered for the position, but refused to provide further details, saying that the decision was the prerogative of the president.

The acting governor in particular appears to be keen on getting the job he is currently filling in for. Sources told The Express Tribune that the Presidency had summoned Anwar on October 7 – one day before the SBP announced its surprise 1.5% cut in the benchmark interest rates – reportedly to ‘inform’ him of the government’s decision to lower rates.

(Read: Explaining the rate cut - A case of contrasting styles)

That ‘decision’ was lambasted by independent economists as politically motivated and potentially detrimental to the country’s macroeconomic stability.

Central banks are ordinarily meant to be independent and resist pressure from governments to move interest rates up or down due to political reasons but Anwar is described by many sources as a “non-assertive personality” who engaged in an “act of appeasement” to be appointed SBP governor.

Anwar’s weakness may be a strength in the race, though. With election season rolling around, the government appears to be in search of a candidate who will go along with what the administration needs, not necessarily what makes sense for sound management of the economy, said one person familiar with the matter.

The finance ministry appears to favour Ali Raza, said sources. Ali Raza is the brother of Salim Raza, the man who was SBP governor before Kardar and one of the two men who resigned prematurely from their term as head of the central bank owing to policy differences with the government. Ali Raza, however, may be too old for the job.

Shamshad Akhtar, who was Salim Raza’s predecessor, has a lot of credibility among economists, having been the governor who almost refused to hand over blank checks to the finance ministry during the government’s self-inflicted financial crisis of 2008. Needless to say, however, she is not popular with the finance ministry.

Kardar was the 16th governor of the SBP, and the third under the current administration. Sources said he resigned due to his opposition to the inclusion of the finance secretary (the highest ranking civil servant in the finance ministry) on the SBP Central Board, the body that makes decisions on interest rates. Kardar felt that the finance secretary’s presence on the board was an inherent conflict of interest that compromised the integrity and independence of the central bank.

Published in The Express Tribune, October 18th, 2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/276438-SBP-1318896997/276438-SBP-1318896997.JPG" class="featured_image"/>
            </image>
			</item>	</channel>
                </rss>
