CREATIVE COMMONS
ISLAMABAD: The federal government is considering appointing the deputy governor of State Bank of Pakistan (SBP), Saeed Ahmad, as the new head of National Bank of Pakistan (NBP). However, it is likely to run into obstacles due to his age and objections over dual nationality.
Saeed Ahmad is considered a close confidant of the ruling family due to his long association spanning almost over three decades. Finance Minister Ishaq Dar on Saturday interviewed a panel of bankers to pick one of them as president of the country’s largest commercial bank in terms of deposit base.
The ministry would now send a panel of three to Prime Minister Nawaz Sharif for appointing the new president.
The post of the NBP president fell vacant in January this year after Syed Iqbal Ashraf could not win an extension after completing his first three-year term. During Ashraf’s tenure, financial scandals involving Abandoned Properties Organization (APO) and Prime Minister’s Youth Business Loan Scheme hit the bank.
The post of NBP president becomes critical particularly at a time when general elections are scheduled for next year. The government-owned bank has been used in the past for various political purposes.
Ahmad enjoys a long association with the ruling family, spanning over 27 years. In 2014, Ahmad was appointed as deputy governor central bank for two years. However, last month, the federal government gave him a two-year extension, with effect from January 21.
Before being appointed as deputy governor, Ahmad was running the Sage Care Homes in United Kingdom.
Ahmad is over 68 years old and can get a maximum of one-and-a-half years as head of NBP, said sources in the finance ministry. The SBP regulations bar appointment of Chief Executive Officer of a commercial bank beyond 70 years of age.
According to 2009 prudential regulations for corporate/commercial banking of the SBP, the Chief Executive Officer of a bank “should be between 40 to 70 years of age”.
The bank’s Nationalization Act, 1974 states, the president shall be appointed by the federal government, in consultation with the SBP, for a term of three years, on such terms and conditions as may be fixed by the General Meeting of the bank.
The SBP regulations further state that the CEO must be a career banker having at least five years of experience at a senior level as Executive Vice President and above or equivalent ie Group Head of Financial/Business Line in a bank and possess expertise and skill set to undertake responsibilities of the position effectively and prudently.
Ahmad started his career with Prudential Corporation, London and qualified as a fellow of Institute of Actuaries, London. He has served Chase Manhattan Bank/SIBC Riyadh in corporate finance and as Head of Corporate Finance and International in Kuwait Asia Bank, Bahrain. He was also associated with Faysal Islamic Bank of Bahrain-Manama, Bahrain. Ahmad has also served in an automobile company in Saudi Arabia as its treasurer.
He is a dual national and owns a United Kingdom nationality. However, this does not disqualify him, as in the past the head of the central bank was also a dual national. But his appointment could be challenged in court due to this factor, said the sources.
Other candidates
Nausherwan Adil, the Group Chief Operations of NBP, is another strong candidate for the post of NBP president. Adil recently retired from the service but won a three-month extension that is also expiring this month. Adil’s father was also a president of NBP.
Mudassair Khan, head of NBP commercial and retail banking, also appeared for the interview. Khan remained in the news about two years back when he claimed in a meeting of the Senate Standing Committee on Finance that there were about 600,000 fake pensioners in the country.
However, Khan is said to be more competent than his other four competitors. The other two candidates were Nadeem Ilyas and Aman Siddique.
Published in The Express Tribune, March 5th, 2017.
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