SBP Governor, FBR Chairman Suddenly Terminated From Offices

KARACHI/ISLAMABAD: As a result of rapid developments in Islamabad on Friday, the government removed the governor of the State Bank and the chairman of the Federal Board of Revenue (FBR).

SBP Governor Tariq Bajwa confirmed to Dawn that he had been requested to resign for while he was in Islamabad for talks in International Monetary Fund (IMF), which was actually expected to be ‘progressing’ according to the new finance Advisor to PM.

This was a day when Prime Minister Imran Khan suggested further cabinet changes in the coming days.

The effect of the changes of these senior and major officials on the negotiations with the IMF was unclear.

No official reason was given for sudden termination; name of new central bank chief is expected to be announced today

A substitution for the SBP position is expected on Saturday (today), but there were no official words on when the new FBR chairman name will be announced.

The two men seem surprised when the news of his departure flashed across the news television screens for Saturday night.

Likewise, before the program was completed, Mr Bajwa took part in the last round of negotiations with the IMF.

Their termination has not yet been formalized since notice must be sent to the FBR Chairman, and before his departure, a letter of resignation from the SBP Governor will be required. However, in the days ahead this will probably be a small formality.

The officers of the Pakistan Administrative Service, Mr Bajwa and Mr Khan are 22 Grade officers, however, the former was appointed after his retirement.

In the days leading to the removal of Mr Bajwa's performance, there was little indication of unhappiness.

The sources informed the Dawn news that Imran Khan is not happy with the services of FBR chairman and was viewed as “a mediocre person”, lacking dynamism, and was held largely responsible for the lacklustre revenue performance since his appointment.

By the end of this financial year, the FBR is on the way to record one of the greatest deficits in its history, expected to exceed Rs350 billion.

The resources said that the newly appointed Finance Minister was agreed with PM’s views and planning to bring in his own team to manage the country’s finances.

In every IMF program, the Governor of SBP and the chairman of FBR both are key players. In fact, the Governor is one of the signatories to any programme, and the FBR President is responsible for achieving a revenue goal that is generally the centre of any program.

Resource: Dawn, May 4th, 2019

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