Differences delay appointments on key SBP posts
Govt, central bank could not agree on appointing two deputy governors.
ISLAMABAD:
As the country’s financial sector passes through critical times requiring more stringent monitoring of the banking sector, the tussle between the federal government and State Bank of Pakistan (SBP) has delayed appointment of deputy governors in the central bank.
Two posts of deputy governor fell vacant after Yaseen Anwar was upgraded to the slot of central bank governor and Dr Kamran Shehzad retired on March 11.
One post has remained vacant because of perceived personality clash between the candidate and SBP management. The other position could not be filled due to finance ministry’s reservations about the nomination, sources privy to the developments revealed to The Express Tribune.
The ministry wanted to give extension to the recently retired deputy governor Kamran Shehzad and had even prepared a summary. However, the central bank management preempted the move and issued a notification for his retirement.
In another case, sources said, SBP Governor Yaseen Anwar recommended that one of his executive directors should be appointed as deputy governor. However, the finance ministry questioned the “integrity of the nominee” and refused to accept the recommendation.
However, officials still do not rule out the possibility of accepting this nominee provided the presidency puts its weight behind the central bank.
“There are vacancies of deputy governors in the State Bank and the competent authority for filling the posts is the federal government. You may contact the Ministry of Finance for getting answers to your queries,” said SBP’s chief spokesman Syed Wasimuddin.
He was responding to queries about causes of delay, impact on central bank working and the executive director who was nominated for the post.
According to the State Bank Act, the competent authority for appointing the governor and deputy governors is the federal government.
However, recently Governor Yaseen Anwar has raised concerns over delay in filling the two key posts. Speaking at a meeting of the Senate Standing Committee on Finance, Anwar said it was high time to closely monitor the banking sector but the job was not fully done due to delay in appointments.
Though he agreed that it was the right of the government but said in the past the government always appointed deputy governors on the recommendation of the governor. He called for keeping the tradition alive.
Top officials of the finance ministry refused to speak on record, but said the ministry was opposing the SBP governor’s nominee for the betterment of the financial sector.
A senior ministry official said since both sides had reservations about the appointments, the government decided to hire independent deputy governors who could be from outside the central bank.
Probable candidates for the posts are Jameel Ahmad, an employee of the central bank who is currently serving in a Middle Eastern country. Other potential candidate is Khaleeq Kayani, who is currently serving in one of the top three banks of the country.
“Owing to delay in appointments, the workload of the governor has increased significantly,” according to an official who was familiar with SBP working. He said in the absence of deputy governors the job of looking after the banking sector was largely left with executive directors.
Published in The Express Tribune, March 31st, 2012.
As the country’s financial sector passes through critical times requiring more stringent monitoring of the banking sector, the tussle between the federal government and State Bank of Pakistan (SBP) has delayed appointment of deputy governors in the central bank.
Two posts of deputy governor fell vacant after Yaseen Anwar was upgraded to the slot of central bank governor and Dr Kamran Shehzad retired on March 11.
One post has remained vacant because of perceived personality clash between the candidate and SBP management. The other position could not be filled due to finance ministry’s reservations about the nomination, sources privy to the developments revealed to The Express Tribune.
The ministry wanted to give extension to the recently retired deputy governor Kamran Shehzad and had even prepared a summary. However, the central bank management preempted the move and issued a notification for his retirement.
In another case, sources said, SBP Governor Yaseen Anwar recommended that one of his executive directors should be appointed as deputy governor. However, the finance ministry questioned the “integrity of the nominee” and refused to accept the recommendation.
However, officials still do not rule out the possibility of accepting this nominee provided the presidency puts its weight behind the central bank.
“There are vacancies of deputy governors in the State Bank and the competent authority for filling the posts is the federal government. You may contact the Ministry of Finance for getting answers to your queries,” said SBP’s chief spokesman Syed Wasimuddin.
He was responding to queries about causes of delay, impact on central bank working and the executive director who was nominated for the post.
According to the State Bank Act, the competent authority for appointing the governor and deputy governors is the federal government.
However, recently Governor Yaseen Anwar has raised concerns over delay in filling the two key posts. Speaking at a meeting of the Senate Standing Committee on Finance, Anwar said it was high time to closely monitor the banking sector but the job was not fully done due to delay in appointments.
Though he agreed that it was the right of the government but said in the past the government always appointed deputy governors on the recommendation of the governor. He called for keeping the tradition alive.
Top officials of the finance ministry refused to speak on record, but said the ministry was opposing the SBP governor’s nominee for the betterment of the financial sector.
A senior ministry official said since both sides had reservations about the appointments, the government decided to hire independent deputy governors who could be from outside the central bank.
Probable candidates for the posts are Jameel Ahmad, an employee of the central bank who is currently serving in a Middle Eastern country. Other potential candidate is Khaleeq Kayani, who is currently serving in one of the top three banks of the country.
“Owing to delay in appointments, the workload of the governor has increased significantly,” according to an official who was familiar with SBP working. He said in the absence of deputy governors the job of looking after the banking sector was largely left with executive directors.
Published in The Express Tribune, March 31st, 2012.