The Federal Cabinet has formed a special committee to review proposed amendments to the State Bank of Pakistan (SBP) Act, 1956, which address the eligibility of dual nationals for sensitive leadership positions within the central bank. The committee, led by Minister for Planning, Development, and Special Initiatives Ahsan Iqbal, will assess the implications of these amendments outlined in the State Bank of Pakistan (Amendment) Bill, 2024.
The proposal, presented by the Ministry of Finance during a recent Cabinet meeting chaired by Prime Minister Shehbaz Sharif, seeks to revise current restrictions on dual nationals. As per the existing framework under Section 11A(6) of the SBP Act, only the position of Governor is off-limits for dual nationals. The Ministry argued that these limitations restrict the talent pool, preventing the appointment of qualified individuals to other significant roles such as Deputy Governors, Directors, and Monetary Policy Committee members. The amendments also address Pakistan’s evolving financial needs, such as introducing digital currency, establishing SBP subsidiaries, and enabling more flexible appointments for leadership positions.
The proposed changes had already been vetted by the Law and Justice Division. However, Cabinet members expressed mixed opinions. Some raised concerns about allowing dual nationals to hold sensitive positions, emphasizing the risks of conflicts of interest and national security vulnerabilities. Others favored granting case-by-case exceptions, enabling the recruitment of highly qualified professionals while safeguarding institutional integrity.
In response to these concerns, the Cabinet opted to form a committee under Rule 17(3) of the Rules of Business, 1973, instead of forwarding the bill to the Cabinet Committee for Disposal of Legislative Cases (CCLC). The committee includes the Ministers for Defence, Law and Justice, and Finance, along with the Secretary Finance and the Chairman of the Federal Board of Revenue (FBR). It will also have the discretion to include additional members or experts to provide technical insights.
The committee will thoroughly evaluate the proposed amendments to determine whether they should be adopted, modified, or rejected. It will also explore whether the restrictions on dual nationals should apply exclusively to the SBP or extend to other government organizations. Additionally, the committee will assess the viability of allowing exemptions for dual nationals under exceptional circumstances, particularly when merit and national interest are demonstrated.
The Ministry of Finance clarified that the amendments are intended to enhance the SBP’s ability to address modern challenges in the financial sector. By facilitating leadership appointments and fostering initiatives such as digital currency and improved governance structures, the amendments aim to position the SBP to better manage Pakistan’s economic needs.
While the Ministry sought immediate progress on the bill, the Cabinet’s decision to undertake a detailed review reflects its intent to balance global expertise with national priorities. The committee’s findings are expected to provide a clear framework for dual nationals’ eligibility and strengthen confidence in the SBP’s governance structure.
This review is significant for the future leadership of the central bank and highlights ongoing efforts to modernize Pakistan’s financial systems while addressing concerns about transparency, security, and institutional credibility. The Cabinet’s decision ensures a measured approach to implementing reforms that could impact the country’s broader financial governance framework.