ISLAMABAD: Pakistan’s finance minister Miftah Ismail announced on Wednesday the country’s central bank had been taken over by its senior most deputy governor after Dr. Reza Baqir’s three-year tenure in the office ended on May 4.
With significant experience of working with the World Bank and International Monetary Fund (IMF), Baqir was appointed by President Arif Alvi as governor of the State Bank of Pakistan (SBP) in 2019.
Some local media outlets previously reported the new administration of the country could extend his tenure “for a few months” amid negotiations with the IMF over the resumption of a $6 billion loan program.
However, the finance minister ruled out that possibility on Tuesday while saying he had conveyed the government’s decision to the outgoing SBP governor.
“As the term of Governor SBP Dr Reza Baqir has come to an end, as per law the senior most Deputy Governor takes over until,” he said in a Twitter post. “Therefore Dr Murtaza Syed, an eminently qualified economist with rich IMF experience, will take over as Governor SBP. I wish him the best in his new role.”
Pakistan is facing a major current account deficit with depleting foreign exchange reserves. The country is seeking external financing and recently requested the IMF to extend the size and duration of its ongoing loan program.
Ismail praised Baqir on Tuesday for being “an exceptionally qualified man,” adding that he worked well with the new Pakistani administration “during our brief time together.”
It is not clear if the new central bank governor is an interim appointment or the government’s long-term choice.
