SBP gets deputy after dual nationality row

M Ali Malik appointed after long vacancy; finance ministry interviews candidates for NBP president

ISLAMABAD:

The government on Monday appointed Muhammad Ali Malik as new deputy governor of the central bank and also conducted interviews for the position of President of the National Bank of Pakistan (NBP) amid a strong panel of candidates, some of them enjoying support from various quarters.

The federal cabinet approved the appointment of Malik as the third deputy governor, filling the post that remained vacant for a longer period due to indecision about the dual nationality issue.

Malik was one of the three candidates whose names were sent by the State Bank of Pakistan (SBP) governor to the federal government for appointment. Under the SBP Act, the central bank recommends a panel of three candidates after consultation between the governor and the finance minister.

The federal government has the right to appoint any one of the three panellists. On the top of the list was Dr Mohammad Akhtar Javed, Executive Director Banking at the central bank.

The deputy governors shall be appointed by the federal government after consultation between the Minister of Finance and the governor, from amongst a panel of three candidates recommended by the governor for each vacant position, in order of merit, according to the law.

"In exercise of powers conferred under section 11 A (2) of the SBP Act, the federal government is pleased to appoint Muhammad Ali Malik as deputy governor SBP for a period of five years with immediate effect," according to a notification issued by the finance ministry.

The position of deputy governor fell vacant in November 2024 when Dr Inayat Hussain completed his term but could not be reappointed because of dual nationality issue. The finance ministry had proposed allowing dual nationals to serve as governor and deputy governor of the central bank.

This restriction had initially been imposed in January 2022 following broad amendments to the SBP Act influenced by the International Monetary Fund (IMF) and the preferences of the former governor. The government had proposed an amendment to Section 13 of the SBP Act, which addresses the disqualification of the governor, deputy governors, directors and members. The current clause disqualifies any person holding dual nationality from serving in these roles.

But the federal cabinet had not approved the amendments. Malik is expected to take over the banking functions that were being looked after by Dr Hussain. The sources said that Dr Hussain might be appointed in the National Institute of Banking and Finance, subject to his willingness and the possibility of him being considered for the position of the governor next year. The position of the SBP governor will fall vacant in August 2027 when Jameel Ahmad completes his five-year term.

NBP president

The finance ministry on Monday held interviews for the position of the president of the NBP – the government-owned commercial bank that has a captured clientage. The term of the incumbent President Rehmat Hassnie, has expired and the government gave him a two-week extension to complete the hiring process.

Hassnie is among the shortlisted candidates and was among those who were interviewed on Monday by a panel in Q Block – the seat of the finance ministry. Among the prominent candidates are Zafar Masood, president of the Bank of Punjab; Rehmat Hassnie, outgoing president of NBP; Usman Shahid, NBP senior vice president; Mudassar Ali of Pakistan Mortgage Reinsurance Company; Hasan Raza of Khyber Bank; and Farrukh Iqbal of First Women Bank Limited. But the first three candidates stand a better chance compared to others.

A senior official of the finance ministry said that there was no preconceived candidate for the president position and the final decision would be taken by the federal government after the interviews. Some other senior bankers also appeared for the interview. The mainstream political parties have in the past influenced the appointment process for the NBP president – a trend that is not prevalent in the private sector banks.

The finance ministry also arranged interviews against the positions of the directors of the Debt Management Office. But there is a possibility that the incumbent staff may again be retained.

However, there was no clarity on the timing of filing the position of the director general of the debt office that remains vacant since January 2026. The additional charge of the director general debt has been given to the additional secretary budget.

An advisor to the finance minister, Omar Khan, had assured the Senate Standing Committee on Finance in May 2026 to fill the post by June 2026.