Cabinet Members Oppose Appointment of Dual Nationals in SBP

Staff Report :

The Cabinet members have strongly opposed appointment of dual nationality holders on sensitive positions in State Bank of Pakistan.

While considering the State Bank of Pakistan (Amendment) Bill, 2024, the cabinet members considered the issue of allowing persons with dual nationality to hold sensitive positions, such as Deputy Governors, in the State Bank of Pakistan was raised.SBP to Celebrate Women Entrepreneurship Day on November 19

In the Bill, State Bank of Pakistan (SBP) had proposed a set of amendments to the Act, which would enable the SBP to take necessary steps for the issuance of digital currency, establish subsidiaries, and provide more flexibility in nominating Directors to its Board, Members of its Monetary Policy Committee (MPC), and Deputy Governors, etc.

During the discussion, there was a view that no dual national should be allowed to hold such positions in the State Bank of Pakistan or elsewhere.

It was also emphasized that the policy of debarring dual nationals from holding public office should be uniform across the board, not just in the case of Members of Parliament.

Some Cabinet Members, however, were of the view that while dual nationals should not be permitted as a general policy to hold sensitive positions in the State Bank of Pakistan, the Cabinet should be empowered to allow this on a case-by-case basis in special circumstances, so that the country does not lose out on hiring the best talent.

The cabinet was informed that the State Bank of Pakistan (SBP) is incorporated under the State Bank of Pakistan Act, 1956. In light of evolving business needs, “SBP had proposed a set of amendments to the Act, which would enable the SBP to take necessary steps for the issuance of digital currency, establish subsidiaries, and provide more flexibility in nominating Directors to its Board, Members of its Monetary Policy Committee (MPC), and Deputy Governors, etc.

The Cabinet was informed that section 11A(6) of the State Bank of Pakistan Act, 1956 already restricts the Governor from holding dual nationality.

Imposing this condition on other officials was considered too restrictive, limiting the pool of potential candidates and the Government’s ability to fill positions with suitable professionals on a timely basis.

The Cabinet was informed that the Law and Justice Division had vetted the proposed amendments.

It was further informed that according to Rule 27 of the Rules of Business, 1973, in-principle approval of the Cabinet was required before submission of proposed amendments in any law to the Cabinet Committee for Disposal of Legislative Cases (CCLC).

Accordingly, the Ministry of Finance solicited in-principle approval of the Cabinet for placing the draft SBP (Amendment) Bill, 2024 before the CCLC.

The Cabinet considered the summary dated 31st October 2024, titled “State Bank of Pakistan (Amendment) Bill, 2024,” and constituted a Cabinet Committee in terms of Rule 17(3) of the Rules of Business, 1973, with the following composition and terms of reference.

Cabinet committee comprised of Minister for Planning, Development & Special Initiatives (Convener), Minister for Defence (Member), Minister for Law & Justice (Member), Minister for Finance & Revenue (Member), Secretary, Finance Division (Member/Secretary), Chairman, Board of Revenue (Member).

Under the terms of Reference, the committee will review the amendments relating to dual nationals proposed in the draft State Bank of Pakistan (Amendment) Bill, 2024, and examine the implications of allowing dual nationals to hold sensitive positions in a central bank.