PM Shehbaz bans dual nationals from holding top positions at SBP

Prime Minister Shehbaz Sharif has announced a ban on dual nationals holding positions as governors, deputy governors, or members of the Monetary Policy Committee at the State Bank of Pakistan (SBP).

PM Shehbaz had previously set up a committee to review a proposal that would allow dual nationals to occupy key positions within the central bank.

Last year, a private bill was introduced in the National Assembly Secretariat, calling for a ban on judges holding dual nationality. This came shortly after the Islamabad High Court condemned a "malicious" social media campaign targeting Justice Babar Sattar.

The bill proposed amendments to Articles 177 (appointment of Supreme Court judges), 193 (appointment of High Court judges), and 208 (officers and servants of courts) of the Constitution.

Under current laws, dual nationals are ineligible to serve in Parliament, and similar restrictions were applied to management and policy roles within the central bank in 2022.

The finance ministry had submitted a proposal for cabinet approval to amend the SBP Act 1956, which would allow dual nationals to serve as deputy governors and legalize the use of cryptocurrencies.

The restriction on dual nationals holding senior roles at the SBP was first introduced in January 2022 following significant changes to the SBP Act, influenced by the International Monetary Fund (IMF) and the preferences of the former governor. However, the IMF did not recommend this particular restriction.

The government had proposed an amendment to Section 13 of the SBP Act 1956, which currently disqualifies individuals with dual nationality from being appointed as governor, deputy governor, director, or committee member. The new amendment suggests removing the clause "having dual nationality," effectively lifting the restriction.

During a cabinet meeting, some ministers expressed concerns about allowing dual nationals in prominent SBP roles, arguing that they often return to their home countries after their tenure. However, Finance Minister Muhammad Aurangzeb, who relinquished his Dutch nationality to take office, emphasized the need for specialists in the central bank and advocated for dual nationals to fill such roles.

The federal government appoints deputy governors based on recommendations from the SBP governor and consultations with the finance minister, using a merit-based list.

Last month, the Senate Standing Committee on Cabinet discussed a bill that would prohibit civil servants from holding dual nationality. PML-N Senator Dr. Afnanullah Khan proposed an amendment to the Civil Servants Act 1973, asserting that civil servants owe loyalty to Pakistan and cannot be loyal to two countries simultaneously.

The Cabinet Division has tasked the committee, led by Planning Minister Ahsan Iqbal, with reviewing the proposed amendments in the draft SBP Amendment Bill 2024. The committee is to decide whether to accept, reject, or modify the amendments and consider if exemptions should be granted for dual nationals in exceptional cases.

Additionally, the committee will evaluate whether the current restrictions on dual nationals at the SBP should apply solely to the central bank or extend to other government entities. The Cabinet Committee has agreed that the clause disqualifying dual nationals in Section 13A of the SBP Act may be removed, provided that dual nationality is disclosed.