No violation of SBP Act: Finance Ministry
A resolution seeking the immediate Pakistan (SBP) Governor Tariq Bajwa was submitted in the Senate by members of the opposition on Monday. The resolution claims 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. (10) (b) of the act states.
Bajwa, who joined the Civil Services of Pakistan in 1981, served as the Federal Board of Revenue’s chairman and retired as the secretary of Economic Affairs Division and Finance on June 18.
Bajwa was appointed as governor SBP via a notification on July 7. He was preceded by Ashraf Wathra, who retired on April 28, and was replaced by Riaz Riazuddin, who served as the acting governor until Bajwa’s appointment.
Bajwa was previously appointed as a director at the SBP and was also on the Bank of Punjab’s board of directors. The resolution, submitted in the upper house of parliament on Monday, has signatures of over 40 senators belonging to the PTI, PPP and ANP, among others.
Meanwhile, with reference to the resolution reportedly tabled 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.
Mr. 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.