In a significant policy reaffirmation, Prime Minister Shehbaz Sharif has upheld the prohibition on dual nationals from serving in top positions at the State Bank of Pakistan (SBP), including the roles of governor, deputy governors, and members of the Monetary Policy Committee. This decision rejects a recent cabinet committee recommendation aimed at lifting these restrictions.
Despite unanimous support from the committee to amend the SBP Act, allowing dual nationals to occupy these critical roles, the federal cabinet has deferred the passage of the State Bank of Pakistan Amendment Bill 2024 for the second consecutive time last week. This delay follows directly after the Prime Minister’s intervention, underscoring his staunch opposition to easing the existing ban.
Originally imposed in January 2022, under amendments influenced by the International Monetary Fund (IMF), the restriction was not specifically mandated by the IMF but has since sparked ongoing debate within the government. Finance Minister Muhammad Aurangzeb has been notably vocal in his support for removing the ban, arguing that it would allow Pakistan to attract global expertise to its central banking system.
Concurrently, the Senate Standing Committee on Cabinet is considering another legislative proposal that would prevent civil servants from holding dual nationality. To thoroughly assess these amendments, the federal cabinet has tasked a committee led by the Planning Minister with determining whether exemptions should be made and if similar restrictions should apply to other government entities.
This latest development highlights the government’s commitment to ensuring that the leadership of key financial institutions remains exclusively in the hands of Pakistani nationals, reflecting a prioritization of national interests over potential foreign influences.
