Anticipated move: Wathra appointed State Bank governor

Incoming SBP chief has favoured finance ministry’s role in running central bank’s affairs.

ISLAMABAD:

Deputy Governor Ashraf Wathra has been elevated as new Governor State Bank of Pakistan, a move analysts believe will further consolidate the federal government’s grip over the central bank.

Wathra has been appointed as governor at a time when the International Monetary Fund has asked the federal government to give real autonomy to the central bank. Wathra has publicly favoured the ministry of finance’s role in running the SBP affairs – a stance that is not liked by former central bankers.

On the advice of Prime Minister Nawaz Sharif, President Mamnoon Hussain has appointed Ashraf Wathra as new governor of SBP, confirmed the prime minister’s spokesperson, Mohiuddin Wani, to The Express Tribune.

The summary for Wathra’s appointment was moved by the finance ministry. Wathra rose to prominence during the previous PPP government when he was appointed deputy governor of SBP.

At that time, the Election Commission of Pakistan had taken notice of the appointment and asked the finance ministry to undo it – a direction never honoured by the Q Block.

After the resignation of former SBP governor Yaseen Anwar in January this year, Finance Minister Ishaq Dar had given Wathra acting charge of the central bank. Wathra is the fourth SBP governor in last six years. His three predecessors had to resign prematurely after developing differences with the federal government. Wathra never objected to the finance ministry intervention in setting the exchange rate, the sources said.

Last week, he told The Express Tribune that state organs can cooperate in deciding the exchange rate, indicating his no-objection to a strong federal government role in running affairs of the central bank.

Published in The Express Tribune, April 29^th, 2014.