Resignation of Governor State Bank of Pakistan (SBP) Shahid H Kardar is a very serious development which has added to worries of the business community, an official of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said Thursday. The development has also sent negative signals to international lending institutions and other donors while simultaneously leading to uncertainty among investors, said Raza Khan, Chairman Coordination, FPCCI while speaking to the business community at FPCCI Capital Office. He said that resignation of Kardar can further delay talks with IMF which were expected in August.
The move proves that the SBP was not allowed to work freely so that it could play its due role in the revival of the economy. The finance ministry continues to dictate directives like financing unproductive expenditure through printing currency which has resulted in sluggish economic growth and criticism on the regulators that has forced three governors of SBP to step down, he added.
Raza Khan said that forcing commercial banking companies to hold government securities has resulted in negative return to depositors and suffocation of the productive sectors, he said. He said that development suggests that the former governor was reasonably serious about reforming economy but was not allowed to take up his leadership role while the top government functionaries remained non-serious as far as economic development is concerned.