PM Rejects Proposal to Lift Dual Nationality Ban for SBP Positions

Prime Minister Shehbaz Sharif has blocked a proposal that would have allowed dual nationals to hold important roles in the State Bank of Pakistan (SBP), including positions such as governor, deputy governors, and members of the monetary policy committee. The decision was made despite a unanimous recommendation from a cabinet committee to remove the legal barrier. Last week, the federal cabinet postponed the approval of the State Bank of Pakistan Amendment Bill 2024 for the second time due to the prime minister's intervention.

To reassess the proposal, the prime minister established a committee, but ultimately, he opposed making exceptions to the current legal ban.

Finance Minister Muhammad Aurangzeb, who gave up his Dutch nationality before taking office, supported the proposal, highlighting that Pakistan requires experts in key financial roles.

At present, dual nationals are prohibited from holding seats in Parliament and from taking up senior positions in the SBP since 2022. This restriction was implemented through amendments to the SBP Act, driven by the stance of the former SBP governor and the International Monetary Fund (IMF), although the IMF did not explicitly call for such a restriction.

The Finance Ministry sought cabinet approval for amendments to the SBP Act that would lift the restriction on dual nationals for important roles, while also proposing the legalization of cryptocurrency. This issue was reviewed by a committee led by Planning Minister Ahsan Iqbal, with members from the ministries of Defence, Law, and Finance, as well as senior officials.

The committee recommended removing Section 13A of the SBP Act, which bars dual nationals from holding high-ranking positions in the central bank.

However, sources say that the prime minister rejected this recommendation, and at the finance ministry’s request, the matter was deferred once again. Some ministers within the cabinet opposed relaxing the rule, raising concerns that dual nationals often leave Pakistan after their tenure ends.

Simultaneously, the Senate Standing Committee on Cabinet is reviewing a separate bill to prevent civil servants from holding dual nationality. Senator Dr. Afnanullah Khan has suggested an amendment to the Civil Servants Act, arguing that public servants cannot owe allegiance to two countries at once.

The cabinet committee is now tasked with evaluating the wider consequences of lifting restrictions on dual nationality for SBP officials.