Opposition seeks SBP governor''s removal: MoF defends Tariq Bajwa''s appointment

With reference to the resolution reportedly tabled yesterday in the Senate of Pakistan regarding the appointment of Tariq Bajwa as Governor State Bank of Pakistan, it is clarified that his appointment is in no way in violation of the SBP Act 1956. Bajwa reached his superannuation and retired from civil service on 18th June 2017. He was appointed as Governor SBP by the President of Pakistan and he took charge of his office on 7th July 2017.
It would be pertinent to mention here that in addition to economists, bankers, chartered accountants, etc., several civil servants after retirement from service have also been appointed as Governor SBP in the past. A resolution seeking immediate removal of State Bank of Pakistan (SBP) Governor Tariq Bajwa, having signatures of 40 Senators, was submitted in the Senate on Monday.
The resolution claims the incumbent governor is not eligible to the post since the SBP rules have been "transgressed" for making this appointment. It asserts that section-10 of the State Bank of Pakistan Act 1956 has been violated with the appointment of Bajwa. "No person shall hold office as Governor, who is employed in any capacity in the public service of Pakistan or of any province of Pakistan or holds any office or position for which any salary or other remuneration is payable out of public funds," Section-10 of the act said.
Retiring as the secretary of Economic Affairs Division and Finance on June 18, Bajwa joined the Civil Services of Pakistan back in 1981. He was appointed as new governor of the SBP via a notification on July 7, preceding by Ashraf Wathra who retired on April 28. Riaz Riazuddin was serving as SBP''s acting governor till July 7 as the top slot of the central bank fell vacant following the retirement of preceding SBP governor Wathra.
Bajwa''s appointment came in the wake of a sudden depreciation and subsequent appreciation in the value of the rupee against the dollar. Finance Minister Ishaq Dar had termed the depreciation artificial. Previously, Bajwa was appointed as a director at the SBP and was also member Bank of Punjab''s board of directors.
He is the brother of Asif Bajwa, chief statistician in the Pakistan Bureau of Statistics (PBS) who conducted the recent population and housing census. Another brother Dr Rashid Bajwa is the CEO of the National Rural Support Programme. The resolution has signatures of 40 senators belonging to the PTI, PPP, ANP, and others excluding the members of the Senate from PML-N.