PM Shehbaz blocks move to allow dual nationals in top SBP positions

Prime Minister Shehbaz Sharif has halted a proposal to allow dual nationals to hold key positions in the State Bank of Pakistan (SBP), including governor, deputy governors, and members of the monetary policy committee, The Express Tribune reported. 

The decision came despite a cabinet committee’s unanimous recommendation to remove the legal restriction. The federal cabinet deferred approval of the State Bank of Pakistan Amendment Bill 2024 for the second time last week, following the prime minister’s intervention.

The prime minister formed a committee to review the proposal but ultimately opposed granting exceptions to the existing legal ban.

Finance Minister Muhammad Aurangzeb, who renounced his Dutch nationality before assuming office, supported the proposal, stressing that Pakistan needs subject specialists in key financial positions. 

Currently, dual nationals are barred from becoming members of Parliament and, since 2022, from holding senior positions in the SBP. The restriction was imposed through amendments to the SBP Act, influenced by the International Monetary Fund (IMF) and the stance of the former SBP governor, although the IMF had not specifically recommended it.

The Finance Ministry had sought cabinet approval for amendments to the SBP Act, which included lifting the restriction on dual nationals for key roles and legalizing cryptocurrency use. The matter was reviewed by a committee led by Planning Minister Ahsan Iqbal, comprising ministers of Defence, Law, Finance, and senior officials. 

The committee recommended removing Section 13A of the SBP Act, which disqualifies individuals with dual nationality from holding senior central bank positions.

However, sources said the prime minister rejected the proposal, and at the finance ministry’s request, the matter was deferred again. Some cabinet ministers argued against relaxing the rule, expressing concerns that dual nationals often leave Pakistan after their tenure.

Meanwhile, the Senate Standing Committee on Cabinet is considering a separate bill to bar civil servants from holding dual nationality. Senator Dr. Afnanullah Khan has proposed an amendment to the Civil Servants Act, arguing that public servants cannot pledge allegiance to two countries simultaneously.

The cabinet committee has now been tasked with reviewing the broader implications of lifting dual nationality restrictions for SBP officials.