ISLAMABAD: Senators of opposition parties on Saturday filed an application with the Islamabad High Court (IHC) saying they want an early decision on their petition challenging the appointment of Tariq Bajwa as governor State Bank of Pakistan (SBP). An IHC bench will hear the petition filed by the 23 senators next week.

Mr Bajwa was appointed SBP governor on July 7, 2017.

IHC Justice Miangul Hassan Aurangzeb had on Nov 6, 2017 had sought replies from the secretary finance ministry and SBP governor in a month. The senators pointed out that the respondents had not replied even after two months.

They have alleged there was “foul play” in the appointment and that the proper procedure was not adopted.

According to the petition, Tariq Bajwa was not appointed in an open and transparent manner. It claims the appointment was made in violation of the dictum laid down by the Supreme Court in the case of Mustafa Impex vs Government of Pakistan. That judgement held that only the federal cabinet can make decisions for such appointments.

The petitioners have said that as per section 10(1) of the SBP Act, the governor is the chief executive officer and on behalf of the board of directors, controls all the affairs of the bank. The governor is also chairman of the board of directors as per section 9(3) of the SBP Act.

The bank’s governor is the competent authority for the appointment of employees and other matters. It says that though the SBP Act does not prescribe criteria for the appointment of the bank’s governor, section 9(a) requires educational qualifications, practical knowledge, competence and experience in banking, finance, monetary policies and economics, especially in areas of money supply, credit, balance of payment and price development management.

The duties of the governor also includes the preparation and overseeing reports related to economic growth, fiscal monetary, external accounts, foreign exchange reserve management and approving strategic investment and risk policy.

In their petition, the senators have said the SBP Act envisages a professional and efficient system and calls for an experienced and qualified governor. They alleged that the PML-N government has all along indulged in ruthless violation of legal requirements and procedures in making appointments and filling vacancies in all key positions of state departments and institutions.

This methodology was consciously adopted for their personal benefits, self aggrandizement and extracting illegal work, the petitioners have contended. The head of the Securities and Exchange Commission is an example, who is behind bars and facing criminal charges, they have said.

The petitioners have maintained that the SBP governor’s appointment is illegal. According to the petition, senators from opposition parties have moved a combined resolution in Senate for the removal of the SBP governor as the appointment violates section 10(a) of the SBP Act.

In response to the resolution, the finance ministry filed a reply in which it said the SBP Act was not violated. Mr Bajwa was appointed after he reached the age of superannuation and that in the past, several bankers, civil servants, economists and chartered accountants were appointed SBP governors post retirement. The petitioners, however, maintained that the appointment was made in a non-transparent manner.

The petitioners include senators Taj Haider, Islam Uddin Sheikh, Farhat Ullah Babar, Karim Ahmed Khawaja, Sassi Palijo, Sehar Kamran, Saeed-ul-Hassan, Liaqut Khan, M. Yusuf Baloch, Hari Ram, Khalida Perveen, Ahmed Hassan, Gian Chand, Murtaza Wahab, Azam Swati,.

Published in Dawn, January 21st, 2018