The International Monetary Fund (IMF) has asked Pakistan to remove the finance secretary from the board of directors of the State Bank of Pakistan (SBP).
According to a media report, the demand was made under the IMF’s “Governance and Corruption Diagnostic Mission” report, which aims to ensure complete independence of the central bank. In 2022, the secretary’s voting rights on the SBP board had already been taken away, but the IMF now wants the membership itself to be withdrawn, even though the official no longer holds voting powers.
The IMF has also urged Pakistan to immediately fill two vacant posts of SBP deputy governors. At present, only Saleem Ullah is serving as a permanent deputy governor, while key departments like banking, monetary policy, and foreign exchange operations remain without permanent leadership.
Former deputy governor Dr. Inayat Hussain is serving in an acting role, but his dual nationality has become a hurdle to his permanent appointment. Sources said the government has finalized the name of Nadeem Lodhi as deputy governor, but cabinet approval is still pending.
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The IMF has further recommended amendments to the Banking Companies Ordinance, 1962, particularly Section 40, to end the federal government’s power to order SBP to inspect commercial banks. The Fund believes this change would strengthen the central bank’s autonomy.
It also suggested that if the SBP governor, deputy governors, non-executive directors, or members of the Monetary Policy Committee are ever removed, the government must publicly state the reasons for such action.
So far, the government has not accepted these recommendations, and discussions are still ongoing.
