IMF economist is Pakistan’s new central bank head

ISLAMABAD: Pakistan appointed Dr. Reza Baqir of the International Monetary Fund (IMF) as its new State Bank governor late Saturday night for a three-year term.
His predecessor Tariq Bajwa served as central bank head since 2017 and was suddenly removed from the post on Saturday along with the chairman of Pakistan’s main tax collecting body, the Federal Board of Revenue (FBR). A confirmation on the new FBR chief remains on the cards.
“The President of Pakistan is pleased to appoint Dr. Reza Baqir as Governor State Bank of Pakistan (SBP) for the period of three years from the date he assumes office,” a Finance Division notification said.
Baqir is a graduate of Harvard University and later obtained his PhD in economics at the University of California, Berkeley. He has worked with the IMF for the last 16 years, including stints as chief of the IMF’s Debt Policy Division where he designed IMF policies on external debt sustainability and restructuring. In August 2017, he moved from IMF headquarters in Washington DC to head the organization’s office in Egypt. He has also worked with the World Bank and the Massachusetts Institute of Technology.
Baqir comes as the second IMF staffer to head the central bank. Before him, Dr. Mohammad Yaqub was brought in from the IMF to lead the SBP from 1993 to 1999.
Last month, a major federal cabinet reshuffle saw Finance Minister Asad Umar sacked amid vital bailout negotiations between Pakistan and the IMF, in a move that led to weakened growth rates and soaring inflation.