State Bank Governor's resignation to increase Pakistan's financial crunch
Saturday, 5 June 2010
Jamil Bhatti
The sudden resignation by the governor of the State Bank of Pakistan Wednesday will add to the government's financial problems in the time when Pakistan is going to present its fresh budget for the fiscal year 2010-11, experts said.
Syed Salim Raza, Governor of State Bank of Pakistan, the country 's central bank, resigned from his position Wednesday on some personal reasons, finance division said.
Raza was appointed on the post in January 2009 for three years contract but he resigned due to some hidden reasons just after one year of his service.
Naseem Anwar, a manager in a bank in Islamabad considered this move as a big blow for the government and mysterious to some extent.
"Resign from the head of the central bank of the state just three days before the budget announcement on June 5 has given rise to many questions," Anwar said.
Raza was a key member of the Pakistani team holding continuous talks with the International Monetary Fund on the 11.3 billion US dollars loan programme.
"The government acknowledges the meritorious services rendered to the country by Syed Salim Raza as Governor of the State Bank," a press release from the finance division said.
"I do not know any reason for the resignation of the SBP governor," State Bank spokesman Syed Wasimuddin said. According to Pakistan's local newspapers Raza had to quit after the development of some serious differences between him and finance advisor to the Prime Minister.
Rumours had been doing the rounds for the past three days about the fate of Raza. According to media reports, Raza wanted to leave after having failed to get an extension in service under the State Bank of Pakistan Act which does not allow a person above the age of 65 years to hold the slot.
An official said the State Bank has been facing issues of lack of independence and heavy borrowing by the government. "Dr Ashfaque Hasan, former advisor to the Ministry of Finance, is one of the possible names being considered for the post of SBP governor," the source said.
"Amid talks with IMF and prior to the fresh budget, resignation of Governor, State Bank will add to the problems of the government," said Zahid Maqbool, president of Islamabad Chamber of Commerce and Industry. People are curious about the ground reasons on which the governor has decided to resign at a time when the country is passing through critical economic situation, Maqbool added.
— Xinhua
The sudden resignation by the governor of the State Bank of Pakistan Wednesday will add to the government's financial problems in the time when Pakistan is going to present its fresh budget for the fiscal year 2010-11, experts said.
Syed Salim Raza, Governor of State Bank of Pakistan, the country 's central bank, resigned from his position Wednesday on some personal reasons, finance division said.
Raza was appointed on the post in January 2009 for three years contract but he resigned due to some hidden reasons just after one year of his service.
Naseem Anwar, a manager in a bank in Islamabad considered this move as a big blow for the government and mysterious to some extent.
"Resign from the head of the central bank of the state just three days before the budget announcement on June 5 has given rise to many questions," Anwar said.
Raza was a key member of the Pakistani team holding continuous talks with the International Monetary Fund on the 11.3 billion US dollars loan programme.
"The government acknowledges the meritorious services rendered to the country by Syed Salim Raza as Governor of the State Bank," a press release from the finance division said.
"I do not know any reason for the resignation of the SBP governor," State Bank spokesman Syed Wasimuddin said. According to Pakistan's local newspapers Raza had to quit after the development of some serious differences between him and finance advisor to the Prime Minister.
Rumours had been doing the rounds for the past three days about the fate of Raza. According to media reports, Raza wanted to leave after having failed to get an extension in service under the State Bank of Pakistan Act which does not allow a person above the age of 65 years to hold the slot.
An official said the State Bank has been facing issues of lack of independence and heavy borrowing by the government. "Dr Ashfaque Hasan, former advisor to the Ministry of Finance, is one of the possible names being considered for the post of SBP governor," the source said.
"Amid talks with IMF and prior to the fresh budget, resignation of Governor, State Bank will add to the problems of the government," said Zahid Maqbool, president of Islamabad Chamber of Commerce and Industry. People are curious about the ground reasons on which the governor has decided to resign at a time when the country is passing through critical economic situation, Maqbool added.
— Xinhua