ISLAMABAD:
A parliamentary panel on Tuesday asked the government to explain the reasons for keeping a key position of deputy governor at the central bank vacant for the past one and a half years, as it also expressed dissatisfaction over the performance of the debt office.
The Senate Standing Committee on Finance instructed both the finance ministry and the State Bank of Pakistan (SBP) to submit details about when former deputy governor Dr Inayat Husain completed his term, when the central bank governor sent a panel of candidates to fill the post, and why the post remains vacant.
Senator Talha Mehmood raised the issue of vacant positions, including the director general of debt at the finance ministry. The matter came up during a vote on the Exim Bank amendment bill, which the standing committee approved to bring the law in line with the State?Owned Enterprises (SOE) Act. The International Monetary Fund has imposed the condition to bring the laws of ten entities in line with the SOE law.
Neither the finance ministry nor the central bank could give reasons for keeping the deputy governor position vacant.
Dr Inayat Husain holds dual nationality, and the central bank law bars the appointment of dual nationals as governor and deputy governors. Given his experience and significant role within the SBP, the government and the SBP governor were keen to retain him for a new five?year term. When Dr Husain was originally appointed, there was no restriction on the appointment of dual nationals.
SBP Governor Jameel Ahmed also declined to comment on the matter earlier this month.
Two deputy governors are currently serving at the central bank. Saleem Ullah is responsible for finance, inclusion and innovation, while Muhammad Amin Khan Lodhi is responsible for monetary policy and research.
The finance ministry proposed about a dozen amendments to the SBP Act in December 2024, including ending the dual nationality ineligibility, but these amendments could not pass through cabinet scrutiny. The ministry had proposed allowing dual nationals to serve as governor and deputy governor, amending Section 13 of the SBP Act, which currently disqualifies any person holding dual nationality from serving in these roles.
Some cabinet ministers objected to allowing dual nationals to become governor and deputy governor, pointing out that in most cases such dual nationals returned to the countries they came from.
Headed by Senator Saleem Mandviwalla, the standing committee approved the Exim bill on the condition that the government will move separate amendments to the SOE Act to make it binding to fill all vacant positions within a certain timeframe. Mandviwalla suggested that relevant boards should recommend names within one month, and it must be binding on the government to fill the post within three months of receiving the board nominations.
Senator Talha Mehmood also inquired about the vacant position of director general of debt at the finance ministry. However, an external adviser to the debt office, Omar Khan, could not give a satisfactory reply about the appointment.
“The former director general of debt resigned in January?February this year, and the government is currently in the process of shortlisting candidates,” said Khan. However, he could not give a firm date for the appointment.
Former director general of debt Mohsin Chandna took oath as a member of the Sindh Public Service Commission on January 13 this year, and the position has been vacant since then. There is no director general of debt, and only one permanent director out of three positions exists.
The finance ministry has given the additional charge of two directors to a consultant on domestic debt and to a risk assessment expert. Despite its failure to fill the current positions of director general and directors, the finance ministry on Tuesday obtained new legal powers to appoint as many directors in the debt office as it deems appropriate.
“If you see the performance of the debt, we do not need the debt office,” said Saleem Mandviwalla.
But Minister of State for Finance Bilal Kayani said there was a need to further strengthen the debt office, noting that the debt position has improved compared with the past. The committee was not satisfied, and on Kayani’s suggestion, it decided to take a comprehensive briefing from the debt office.
Kayani also assured the committee that the new director general of debt would be appointed before the end of June.
Despite the debt office being understaffed, the finance ministry has transferred the functions of foreign commercial borrowings and national savings to the debt office, withdrawing these functions from the external finance wing and the budget wing.
