LAHORE: Some sharp differences between SBP Governor Shahid H. Kardar and the government over policy actions have reportedly led to his resignation. According to well-placed sources, the out-going governor in his resignation letter has cited "Continuing differences of opinion on policy actions and on the implementation of certain directions" that, in his judgement, were not prudent or consistent with the integrity of the State Bank.
According to him, all the decisions that he took while in office were to safeguard the integrity of the Bank, to ensure prudent conduct of monetary policy and to maintain the safety, soundness and stability of the banking system. However, he added "critical differences are impeding the fulfilment of this mandate."
He also said: "For these reasons and, more importantly, to avoid possible paralysis in economic decision-making in these difficult times for our nation, the only honourable course for me is to leave my position as Governor, State Bank of Pakistan." Meanwhile, Deputy SBP Governor Yaseen Anwar, Finance Secretary Dr Waqar Masood Khan, Planning Commission, Deputy Chairman Dr Nadeemul Haq and former Economic Adviser Ministry of Finance Dr Ashfaque Hasan Khan are being tipped for the position that has fallen vacant following Shahid H. Kardar's resignation.