Govt faces tough task filling top economy jobs
KARACHI:
The hunt is on for the next state bank governor but, as straight-forward a task as it may seem, the government is no closer to filling the prestigious post and is partly to blame for it remaining vacant.
Concerns about political interference and a lack of economic focus on the government’s part are forcing top financial minds to think hard before accepting official posts, industry and government officials said.
The premature exit this month of State Bank of Pakistan Governor Saleem Raza, who was hand-picked by the government, has increased concerns about the independence of state institutions.
Maria Kuusisto, Asia analyst at the London-based political risk research firm Eurasia Group, said many of the top professionals were not taking positions because of competing political and economic pressures and worries they will not be allowed to pursue the required reforms.
Analysts said investors, particularly foreigners, would start getting worried if delays in making appointments were prolonged.
“Investors, to some extent, are concerned about the fact that political appointees are gaining ground in these institutions and the fact the quality of the leadership might be suffering,” Kuusisto said.
Asif Bajwa, special secretary at the ministry of finance, declined to comment on the issue. No one from the offices of either Prime Minister Yousaf Raza Gilani or President Asif Ali Zardari was available for comment, despite repeated attempts.
Personal reasons
Central bank governor Raza cited personal reasons for his departure, but a senior government official familiar with the resignation said that was not the case.
In February, then finance minister Shaukat Tarin also resigned, saying he wanted to focus on his private business.
“The job of the central bank governor is a very prestigious one, and on the face of it, everyone would want to be the governor,” said a top banker.
“But having said that, in the current situation, any true professional will be hesitant to go there unless he is given assurances that he will be allowed to work independently and without influence,” he said.
The delays in appointments do not bode well for the government, and it may face a similar situation for more top financial jobs in coming months.
The contract for the head of the Competition Commission of Pakistan expires next month, while the Securities and Exchange Commission of Pakistan will also need a new chairman in November.
Published in The Express Tribune, June 23rd, 2010.
The hunt is on for the next state bank governor but, as straight-forward a task as it may seem, the government is no closer to filling the prestigious post and is partly to blame for it remaining vacant.
Concerns about political interference and a lack of economic focus on the government’s part are forcing top financial minds to think hard before accepting official posts, industry and government officials said.
The premature exit this month of State Bank of Pakistan Governor Saleem Raza, who was hand-picked by the government, has increased concerns about the independence of state institutions.
Maria Kuusisto, Asia analyst at the London-based political risk research firm Eurasia Group, said many of the top professionals were not taking positions because of competing political and economic pressures and worries they will not be allowed to pursue the required reforms.
Analysts said investors, particularly foreigners, would start getting worried if delays in making appointments were prolonged.
“Investors, to some extent, are concerned about the fact that political appointees are gaining ground in these institutions and the fact the quality of the leadership might be suffering,” Kuusisto said.
Asif Bajwa, special secretary at the ministry of finance, declined to comment on the issue. No one from the offices of either Prime Minister Yousaf Raza Gilani or President Asif Ali Zardari was available for comment, despite repeated attempts.
Personal reasons
Central bank governor Raza cited personal reasons for his departure, but a senior government official familiar with the resignation said that was not the case.
In February, then finance minister Shaukat Tarin also resigned, saying he wanted to focus on his private business.
“The job of the central bank governor is a very prestigious one, and on the face of it, everyone would want to be the governor,” said a top banker.
“But having said that, in the current situation, any true professional will be hesitant to go there unless he is given assurances that he will be allowed to work independently and without influence,” he said.
The delays in appointments do not bode well for the government, and it may face a similar situation for more top financial jobs in coming months.
The contract for the head of the Competition Commission of Pakistan expires next month, while the Securities and Exchange Commission of Pakistan will also need a new chairman in November.
Published in The Express Tribune, June 23rd, 2010.