With two new appointments, SBP finally has full board
Muhammad Hidayatullah and Zafar Masud become newest members.
PHOTO: FILE
KARACHI:
After two new members were appointed on Monday, the State Bank of Pakistan finally has a full central board of governors for the first time in at least three years.
Zafar Masud, the chairman of Burj Capital – an investment bank – and Muhammad Hidayatullah, a chartered accountant with significant experience in dealing with the banking sector, have been appointed as the newest members of the board, each with a three-year term, according to a statement issued by the central bank.
They join the eight other members of the board, five of whom were appointed last month.
The State Bank board consists of ten members. The chairman is the State Bank governor. The only other ex-officio member is the federal finance secretary. The remaining eight members are supposed to be prominent professionals from related professions.
On February 12, The Express Tribune published a story that highlighted the fact that the SBP was operating with only three board members.
On February 27, the government had announced five new board members: Mehmood Mandviwalla, Shahid Ahmed Khan, Nawaz Tiwana, Iskander Khan and Iqbal Hasan.
In conversations with The Express Tribune, several board members suggested that the newly-appointed board consisted largely of well-qualified, independent-minded individuals who would not serve as a rubber-stamp for the government. They also expressed a healthy respect for the State Bank’s internal analytical teams that send recommendations for the board to approve, most prominently on monetary policy.
The State Bank has long been regarded as an independent institution staffed by a highly-qualified staff of analysts. In recent years, there have been fears of the bank’s independence being compromised by pressure exerted by the finance ministry. With a smaller number of board members, the individual weight of the finance secretary’s opinion would be considerably strengthened. With a full complement, a more diverse array of views should be heard, negating the possibility of any one member dominating the decision-making process.
Published in The Express Tribune, March 19th, 2013.
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After two new members were appointed on Monday, the State Bank of Pakistan finally has a full central board of governors for the first time in at least three years.
Zafar Masud, the chairman of Burj Capital – an investment bank – and Muhammad Hidayatullah, a chartered accountant with significant experience in dealing with the banking sector, have been appointed as the newest members of the board, each with a three-year term, according to a statement issued by the central bank.
They join the eight other members of the board, five of whom were appointed last month.
The State Bank board consists of ten members. The chairman is the State Bank governor. The only other ex-officio member is the federal finance secretary. The remaining eight members are supposed to be prominent professionals from related professions.
On February 12, The Express Tribune published a story that highlighted the fact that the SBP was operating with only three board members.
On February 27, the government had announced five new board members: Mehmood Mandviwalla, Shahid Ahmed Khan, Nawaz Tiwana, Iskander Khan and Iqbal Hasan.
In conversations with The Express Tribune, several board members suggested that the newly-appointed board consisted largely of well-qualified, independent-minded individuals who would not serve as a rubber-stamp for the government. They also expressed a healthy respect for the State Bank’s internal analytical teams that send recommendations for the board to approve, most prominently on monetary policy.
The State Bank has long been regarded as an independent institution staffed by a highly-qualified staff of analysts. In recent years, there have been fears of the bank’s independence being compromised by pressure exerted by the finance ministry. With a smaller number of board members, the individual weight of the finance secretary’s opinion would be considerably strengthened. With a full complement, a more diverse array of views should be heard, negating the possibility of any one member dominating the decision-making process.
Published in The Express Tribune, March 19th, 2013.
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