SBP governor did not seek extension

Syed Salim Raza did not seek any extension of his tenure which was due to expire on February 15,2011, bank's spokesman said.

Syed Salim Raza, who resigned from the office of Governor, State Bank of Pakistan, did not seek any extensionof his tenure which was due to expire on February 15, 2011, bank's spokesman said on Thursday.

Raza resigned due to personal reasons, the spokesman said while commenting on press reports quoting SBP sources as saying that Raza has resigned because he was not given extension.

Raza, who took over as governor State Bank on January 2, 2009, was due to retire on February 15, 2011 on attaining the age of 65 years.

The relevant provision of State Bank of Pakistan Act, 1956 provides that no person shall hold the office of the Governor after attaining the age of 65 years. Therefore, the question of his seeking extension does not arise, the spokesman said.

Coming just three days before the announcement of the federal budget 2010-11 on June 5, the resignation has given rise to many questions.

Raza was a key member of the Pakistan team holding continuous talks with the International Monetary Fund’s on the $11.3 billion loan programme. The Finance Division said President Asif Ali Zardari, on the advice of Prime Minister Yousaf Raza Gilani, has accepted Raza’s resignation submitted about a month ago on May 6.

SBP Deputy Governor Yaseen Anwar has taken charge as acting governor for the time being, the press release said.

“The government acknowledges the meritorious services rendered to the country by Syed Salim Raza as Governor of the State Bank,” the press release said.

“I do not know any reason for the resignation of the SBP governor,” State Bank spokesman Syed Wasimuddin told The Express Tribune. Rumours had been doing rounds for the past three days about the fate of  Raza, who had taken charge of the post in January 2009 for a three-year term. According to media reports, Raza wanted to leave after having failed to get an extension in service under the State Bank of Pakistan Act which does not allow a person above the age of 65 years to hold the slot.

An official said the State Bank has been facing issues of lack of independence and heavy borrowing by the government.

“Dr Ashfaque Hasan, former adviser to the Ministry of Finance, is one of the possible names being considered for the post of SBP governor,” the source said.

Published in the Express Tribune, June, 3^rd, 2010.