Governor SBP resigns, Yaseen Anwar to be acting governor

Published: July 13, 2011

Sources say Shahid Kardar has resigned due to differences with authorities.PHOTO: EXPRESS/MOHAMMAD NOMAN

ISLAMABAD: 

State Bank Deputy Governor, Yaseen Anwar has been given the charge of acting governor till a new candidate is chosen for the top job.

Earlier Governor State Bank Shahid Kardar resigned amid reports suggesting he had developed serious differences with top state functionaries, Express 24/7 reported on Wednesday.

The government has accepted his resignation.

Kardar remained governor of the central bank for the shortest period.He was the 16th governor of state bank, and the sixth to resign from this post.

Kardar’s predecessor Saleem Raza had also resigned after staying in office for 16 months.

Earlier sources had said that Yaseen Anwar will be acting governor of SBP.

Updated from print edition (below)

Leaving office: Central bank governor on his way out?

State Bank of Pakistan (SBP) Governor Shahid Hafiz Kardar may be on his way out amid reports suggesting he has developed serious differences with top state functionaries.

His resignation would make him the second governor in two years to have left the prestigious office before completion of the three-year statutory term. His predecessor Syed Salim Raza, a banker, stayed in office for 16 months.

Sources claim he has tendered his resignation but the development was neither confirmed nor denied by the presidency, the finance minister or the SBP.

They added that Kardar had developed serious differences with authorities on certain monetary affairs.

Sustainable economic team

Kardar’s resignation would add to the woes of the PPP-led government which has struggled to bring together a sustainable economic team.

The government has changed four finance ministers, five finance secretaries, four deputy chairmen Planning Commission and now possibly three central bank governors.

Kardar, a chartered accountant by profession, was appointed the 16th governor of SBP, and the third governor during the incumbent Pakistan Peoples Party-led government’s tenure, on September 9, 2010.

His resignation is bound to send negative signals to the reeling market, experts say.

If Kardar resigns, the government will have to appoint his successor within three months, as required under the law. Deputy Governor SBP Dr Yaseen Anwar, sources say, is tipped to be Kardar’s successor for an interim period.

Governor’s shortcomings

Kardar, known as ‘comrade’ in official circles, is reputed to give a tough time to the government during the cabinet and economic coordination committee’s meetings.

His critics, however, say he had started compromising on certain issues.

They add that he has been unable to exert SBP’s independence and made the central bank just another wing of the finance ministry. As evidence, the critics quote his inability to have the SBP amendment act passed in its original shape.

The government subsequently approved a ‘toothless’ act, maintaining the finance ministry’s hold over the SBP.

Chairman Senate standing committee on finance and revenue Senator Ahmad Ali also gave a dissenting note on granting unchecked authority to the finance ministry for borrowing from the central bank at will.  Critics add that he has been unable control inflation and stimulate growth – the economy grew by 2.4 per cent and inflation stood at 13.2 per cent during the last financial year.

Kardar has previously served as minister for finance, planning and development, excise and taxation and industries and mineral development under government of Punjab between November 1999 and January 2001.

Despite repeated attempts, neither the president’s spokesperson Farhatullah Babar nor Finance Minister Dr Abdul Hafeez Shaikh responded to reports of Kardar’s resignation.

Published in The Express Tribune, July 13th, 2011.

Reader Comments (37)

  • central banker
    Jul 13, 2011 - 10:03AM

    bye bye governor you will be missed. you had some good plans but for that we need a good government too.

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  • MAD
    Jul 13, 2011 - 10:23AM

    And the game of musical chairs continues.

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  • SK
    Jul 13, 2011 - 10:29AM

    no one with an iota of sane mind can work with these corrupt rulers. After all govt has converted SBP into bill printing shop and wants it to dish out Rs. 2-3 billion everyday to run its corrupt affairs, no professional with even a little sanity can keep doing that for long.

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  • Khalid Rahim
    Jul 13, 2011 - 10:47AM

    I wonder what made Mr Kardar delay his resignation, when last he had openly told both the President and Prime Minister that they and the Establishment had to mend their ways and seek the path to austerity, if the country’s economic woes are to be curbed. What kind of flowery bait is being put before the State Bank Governer only the stage players know. But it
    is time that Shahid Kardar sticks to his Principles and does not allow this government to blemish his integrity.

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  • MA
    Jul 13, 2011 - 11:05AM

    Agreed with SK.

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  • Umar
    Jul 13, 2011 - 11:14AM

    this is how we are losing our competent minds, and why not who would like to accountable before fake degree holders..

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  • SavePakistan
    Jul 13, 2011 - 11:20AM

    One guy who is trying to right the wrong policies of the government is being pushed out for being sane.

    The criticism should be directed towards the renowned Hafeez Sheikh who despite his various PhDs cannot do something so basic as to convince the government that we NEED an energy policy, stop the taxes on the already taxed and tax some basic things (even if small taxes) on agriculture.

    In my opinion it is Hafeez Sheikh who is asleep at the wheel while Kardar who is making a noise to try to wake him and the rest of the administration up is being chastised for doing so. Kardar sb, I say, let the sleeping dogs lie.

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  • Jul 13, 2011 - 11:44AM

    With so many professionals resigning on principles, it just shows the mess the GOP is in. How can they stabilize the country on a sympathy vote??? Salams.

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  • syed Imran
    Jul 13, 2011 - 12:03PM

    This man did nothing for the country. The only feather in his cap is the printing of currecy notes without collateral and thus bringing in sky rocketting INFLATION

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  • hallaj
    Jul 13, 2011 - 12:10PM

    The resignation has saved us from a disaster. The whole SBP employees will go for a party tonight. Eyaaaaaaaa…………………

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  • bilal
    Jul 13, 2011 - 12:25PM

    Yet another sign of the mess we’re in. It is all expected in a country where laws are not respected and constition (source of all laws) is subservient to whims of individuals who violate it anytime they want to.Without laws you cannot have institutionalization of actions and SBP being subject to Finance ministry is a classic example of lack of checks & balances in governance. This all flows from the top and we know where real power in Pakistan resides…not in the hands of men in sherwanis but those in khakis.
    SBP’s independence is a corner stone of our sovereingty (economic considering its critical role in economic policymaking. SBP gets dictation from the dumb Min. of Finance, which in turn does what the unholy IMF/WB alliance dictates.
    We’ve become an atypical example of a kangroo state.

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  • Blithe
    Jul 13, 2011 - 12:47PM

    It is a real stupid policy.
    High interest rates when all the factors leading to
    inflation are cost push?!?!

    High energy costs, PKR depreciation,
    cartelization , etc. are responsible for high inflation.
    The policy response to keep such a high policy
    Rate is just adding to costs.

    On the printing machine:
    I would like the Governor to stand his ground
    and deny Hafeez Shaikh asking him to print money.
    He should tell Hafeez to balance the budget
    and cut out shenanigans like the Brnazir
    Income support fund.

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  • Chaui Sb
    Jul 13, 2011 - 12:50PM

    Its a good decision i think. Now the other top representatives of SBP (the executive directors and the cheif economic advisers) should also resign in good spirit as they are the true policy-makers of SBP and indeed they should be blamed for working under the influence of Ministry of Finance.

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  • Khalid Rahim
    Jul 13, 2011 - 1:46PM

    How long will we sit and swallow the venom being spitted out by this government and her allies, And the people who can really take matters at hand and stop further deterioration of
    economic conditions should stop acting like fools trying to protect fake democracy. Suo Moto
    action by Supreme Court if possible asking both the President and Prime Minister to resign, dissolving the National and Provincial Assemblies and form an interim government led by a five member council so that they appoint a non-political Prime Minister assisted by federal secretaries for the next 180 days to streamline the national affairs and hold elections baring
    those who were initially barred under NRO and the Federal Agencies have prooof of their corruption during the present tenure.Recommend

  • Word Life
    Jul 13, 2011 - 3:03PM

    Yes confirmed

    He has indeed resigned

    Resignation has been accepted !

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  • Maverick
    Jul 13, 2011 - 3:12PM

    Good job, the government is proving its worth

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  • ayl
    Jul 13, 2011 - 3:22PM

    i dont really knw if its a gud news or a bad one, apparantly every 1z happy so m I, bt deep inside me exists fear about wats coming next….

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  • Meekal Ahmed
    Jul 13, 2011 - 3:36PM

    This is a shocking but not entirely unsurprising news to me. I had made this grim prediction some time ago since I have known the Governor for some 30 years plus. He is a fine up-standing man and a first-class self-taught analytical economist.

    To those of you who blame him for inflation, you chaps obviously don’t know much about economics or economic policy-making under a regime of fiscal dominance which has been compounded by a series of domestic and external shocks to the economy.

    Under those circumstances, there is no magic wand or immediate solution to getting inflation down. We all wish there was. It is and shall continue to be a long and painful process.

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  • Economist
    Jul 13, 2011 - 4:06PM

    Ali Raza- Ex President NBP can be a good choice keeping in view his track record.
    Or Mr. Yaseen Anwar- Acting Governor can be another choice for his vast experience in the field

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  • Hamza
    Jul 13, 2011 - 4:17PM

    Thanks God. Another man of so called principals gone…. He joined SBP and promises and portrays that he is a man of his words……. but what happened every one knows…… If he has resigned on true principals then other top Management of SBP especially (Chief Economic Adviser) should resign immediately…. Only change of governor could never restrict government from borrowing. Top management of SBP should stand up against this fiscal dilemma. Request to All SBP top management: Its time to save Pakistan economy not your own jobs.

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  • Jul 13, 2011 - 4:31PM

    This government job is to destroy Pakistan. One way to do that is to continue policies of Musharraf era, remove all development works and delay consensus on real issues. These people can’t run a tea stall let alone the whole country.

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  • Khalil Arbi
    Jul 13, 2011 - 5:27PM

    @central banker:
    Certainly this is another smash on the face of PPP Government. The post is highly technical and the person was quite ideal for the post. Actually there is no room for any one who loves rule of law and who is man of principal in PPP lead government. We people of Pakistan feel ourselves quite unlucky having such idiotic and selfish regime.

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  • Hassan Farooqi
    Jul 13, 2011 - 5:28PM

    Very ominous. Just before Mr. Bhutto’s government went down in 1977, his father Hafeez Kardar also left Pakistan Peoples Party in protest against government policies. Is history repeating itself?

    During late sixties, a very young Shahid briefly lived in Karachi on the first story of our house. Although he was a pleasant person, he was a matter-of-fact and no-nonse boy who focused hard on studies. I guess he is still a no-nonse guy.

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  • Nooruddin
    Jul 13, 2011 - 5:28PM

    This government has seriously messed up all kinds of things over their tenure so far, I don’t even want to think what might come in the remaining period… but only extrapolating the trend give goosebumps and a need to puke at the same time!

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  • Ozymandias
    Jul 13, 2011 - 6:11PM

    @Moise
    Actually they are doing a very very efficient job of destroying the country

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  • Meekal Ahmed
    Jul 13, 2011 - 6:53PM

    it is quite wrong to think a commercial banker makes a good central banker. The two jobs are entirely different.

    A central banker must have a good grasp of the macro-economy and know all the complex interactions between variables. He must also have a good understanding of global economic developments and they impact the domestic economy.

    Mr Kardar may have been a chartered accountant by profession but his understanding of the economy was excellent as demonstrated in his long list of writings/publications/reports.

    he could hold his own against any so-called professional economist with a PhD degree from an Ivy League college.

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  • Economic Analyst
    Jul 13, 2011 - 8:06PM

    Our current economic woes are due to fiscal indiscipline.Way too much spending’s and lesser revenue collection. Now what the government does is that it tries to bridge this Gap by Central banks borrowing which in turns results in printing of notes.This increases the money in circulation which is the basic reason for Inflation.
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  • hassan
    Jul 13, 2011 - 8:26PM

    he had the right agenda but the wrong government to work with

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  • Central Banker
    Jul 13, 2011 - 9:22PM

    @central banker:
    Thank you Shahid… we needed it the most!! you made the institution a hell for employees

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  • Central Banker
    Jul 13, 2011 - 9:24PM

    Thankyou Shahid… people were fed up of you…. instead of performing your job of macroeconomic stability and financial sector you were involved in HR issues of the institution of which you were not even a part

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  • Anum
    Jul 13, 2011 - 11:44PM

    It is because of incompetent employees like yourself that the Governor would have to get involved in HR issues. By making life hell, he obviously cracked down on the mess that had been created in the internal workings of the State Bank. If life was that difficult, perhaps its best for employees like you ‘Central Banker’ to resign. A man of principles and undisputed integrity, it is a loss for the country. Even in his resignation he sets an example, as commented above.
    .

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  • N
    Jul 14, 2011 - 12:15AM

    @central bankers
    other than the fact that he was a bad employer, do you think he was honest and good at his work?

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  • Anon
    Jul 14, 2011 - 2:43AM

    @syed Imran:
    Errr… Firstly, It is Hafeez Sheikh who demands the consistent printing of notes. Secondly, you really want him to leave and let the president get all the money he can? Well in that case you really don’t know what’s good for your country.

    AND

    @hallaj

    Ofcourse they will. Seeing as he was doing his best to reduce their salaries from alarmingly high amounts. I mean seriously, would you, or for that matter anyone with a sane mind, ever pay a driver Rs. 70,000 a month for 8 hours of duty, AND overtime payment as well. If anyone does they are filthy rich, and believe me, Pakistan cannot afford to pay this much. in its current economic state.

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  • A. Nazar
    Jul 14, 2011 - 3:46AM

    @Central Banker:
    yes it is always good news for lazy incompetent employees when a hardworking boss of principles leaves

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  • Husein Ali Khan
    Jul 14, 2011 - 7:56AM

    Did FBR mess have anything to do with his resignation?

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  • Central Banker
    Jul 14, 2011 - 2:48PM

    @central banker:
    I would like to clarify that he will not be missed by people at SBP. Large number of people have celebrated upon his resignation as he failed to deliver.
    His only agenda seemed reducing administrative cost at the expense of demoralising staff and the future outlook of the bank as well as other critical areas.He proved that he was an accountant not an economist.

    SBP needs an economist not an accountant.

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  • Know-it-all
    Aug 11, 2011 - 7:38PM

    @Central Banker:

    Do see the comment in ET Jul 20th on Yaseen Anwar’s fake CV ‘State Bank: Anwar Takes Over as Acting Governor’:
    http://tribune.com.pk/story/213328/state-bank-anwar-takes-over-as-acting-governor/

    Recommend

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