On a summary moved by Ministry of Finance and on the advice of Prime Minister, President Asif Ali Zardari Wednesday approved the appointment of Yasin Anwar as Governor State Bank of Pakistan, according to a press release. Yaseen Anwar has been Acting Governor (SBP with effect from 18th July 2011) since governor Hafiz H. Kardar resigned.
Son of a distinguished naval officer Commodore S. M. Anwar, Yaseen Anwar assumed the charge of the office of Deputy Governor, State Bank of Pakistan on March 29, 2007. The Federal Government has earlier notified Anwar's appointment as SBP Deputy Governor for a period of three years from the date he assumes the charge of the post. He was also appointed as Acting Governor SBP from June 3, 2010 for a three-month period.
A senior global banker, Anwar brings 33 years of international banking experience to his new assignment. Prior to taking over as SBP Deputy Governor, Anwar was associated with M/s. Kraken Financial Group, London as its Executive Vice-president since 2003.
He has worked closely with various financial institutions and brokerage firms in Pakistan over the past three years and developed an in depth understanding of the financial services sector and the economic reforms in the country.
Anwar, with deep corporate business relationships in US, Europe, and the Middle East, has established a broad range of hands-on experience in managing rapidly growing business units of renowned global financial institutions with detailed knowledge and oversight of the regulatory environment, operations, payments and credit related matters. As a non-Executive Director on the Board of United National Bank Ltd (UK) over the past six years, he has developed strong expertise in the UK financial services regulatory framework on corporate governance as well as senior level ties with the UK Financial Services Authority.
He was Director-Private Banking, Riggs & Co, London from 2001 to 2003. Anwar spent nine years with Merrill Lynch & Co, New York/London as its Vice-President from 1992 to 2001. He also served Bank of America for 15 years from 1976 to 1991 in various responsible capacities such as Vice-President & Section Head for the Global Export Finance Group & the Middle East (1984- 1991), Assistant Vice-President, New York (1982-84), Assistant Manager, Cairo, Egypt (1979 - 1981) and Assistant Manager, Paris/London (1976-1979). He was trained at J.P. Morgan Chase, New York from 1973 to 1975.
Anwar was the Founder and President of the Pakistan Bankers Association, UK from 1997 to 1999. He was also the Member of the Arab Bankers Association, UK. In New York, Anwar had served as an Executive Director on the American Turkish Society, Director on the US-Pakistan Economic Council, Director on the American Middle East Business Association, and Member of the Council on Foreign Relations.
Reuters adds: Anwar's appointment makes him the fourth central bank chief in Zardari's government, reflecting the difficulties Pakistan has had in attracting and retaining officials in government service. Anwar also has aggressively - and unexpectedly - cut the key policy rate by 200 basis points to 12 percent since July, leaving analysts puzzled and concerned that the move, aimed at spurring growth, may end up widening the deficit and spurring inflation in the fragile economy.
The rate cuts have also led to some analysts questioning the bank's independence, specially since the main beneficiary of lower rates would be Zardari's cash-strapped government. Debt-laden Pakistan is also under pressure from a depreciating rupee which makes it harder to repay foreign loans, the country's main source of income to keep its economy afloat.
In 2008, Pakistan and the International Monetary Fund agreed on a 3-year package loan for $11 billion. But the program was halted in 2010 because of slow implementation of fiscal reforms, and only $8 billion had so far been disbursed. The program ended on September 30 and Pakistan opted out of asking for a new loan. Islamabad has to start repaying the loan in early 2012 and that's when the pressure on foreign exchange reserves will increase.