ISLAMABAD: The government named a deputy governor of the State Bank of Pakistan (SBP) as its new chief on Wednesday as the country restarts talks with the International Monetary Fund (IMF) on a stalled $6 billion programme.
Murtaza Syed, an “eminently qualified economist with rich IMF experience”, takes over at the end of the three-year term of incumbent Reza Baqir, Finance Minister Miftah Ismail announced on Twitter.
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. 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.
— Miftah Ismail (@MiftahIsmail) May 4, 2022
It was not immediately clear if Syed would be a long-term replacement or an interim appointment by the government of Prime Minister Shehbaz Sharif, which came to power last month after ousting Imran Khan through a no-confidence vote.
The government had the option of offering another term to Baqir, who was appointed by Khan in 2019.
The appointment comes as Pakistan faces a number of economic challenges, including ballooning deficits and depleted foreign exchange reserves.
Pakistan’s new government has sought an increase in the size and duration of the IMF programme, which has been slow moving forward.
Increased autonomy for the central bank was among reforms agreed upon between the lender and Pakistan as part of the programme that began in 2019.
Legislation to ensure greater autonomy was passed earlier this year and includes insulating the central bank’s policymaking bodies from government interference and increasing the governor’s fixed tenure to five years from three.
As a result, the next governor, whenever formally appointed, will have more autonomy and a longer fixed tenure than his or her predecessors.
