One of the many legacies inherited by the Nawaz government from the Zardari rule is ‘acting’. Not meaning theatrics, it signifies the policy of keeping regulatory and autonomous institutions under the firm control of the government by a fairly legal means — putting people at the head of such bodies in the position of “acting”.

Hanging by a string, the acting chairman must follow the dictates of the government bigwigs or risk slipping from between their index finger and thumb. Several economists say that in its eagerness to improve the macro indicators, the government has all but slowed down the process of reforms.

The regulators, mostly ‘acting’, are in effect toothless. The peaceful ‘co-existence’ with the regulatees, who sometimes are powerful lobbies, ensures the regulator his survival in his seat.

The chairman of the apex regulatory body, the Securities and Exchange Commission of Pakistan (SECP), Tahir Mahmood is working in the capacity of ‘acting’. On April 27, 2013, the Finance Division appointed Mr Mahmood as acting chairman of the SECP after the Supreme Court’s decision that declared placement of Muhammad Ali Ghulam Muhammad, the then chairman as commissioner and chairman of the SECP, as illegal and invalid.

Mr Mahmood, previously Commissioner Company Law Division SECP, represents the category of commissioners who are being appointed from within the commission under Section 5 of SECP Act, 1997 — and yet in that capacity, he works as an ‘acting’ chairman.

And take the case of the regulatory body, the Competition Commission of Pakistan (CCP). Prime Minister Nawaz Sharif had re-appointed Dr Joseph Wilson as member CCP for a term of three years with effect from Nov 12, 2013, and through a separate notification, appointed him as chairman on “acting charge basis until further orders”.

Dr Wilson, widely believed to be the most competent man for the job, has all but to turn the other cheek when ‘cartels’, who were earlier fined and their offices were raided by the commission, now blatantly deny even their existence.

That brings forward the case of the country’s central bank, the State Bank of Pakistan (SBP). The ‘acting’ governor of the autonomous SBP knows that he can continue to sign the country’s currency notes only just as long as he acts according the ‘advices’ of the finance ministry.

On Feb 1, Finance Minister Ishaq Dar appointed Ashraf Mahmood Wathra as the ‘acting’ governor “till further orders”, replacing Governor Yaseen Anwar.

Although the SBP claimed personal reasons for the exit of Anwar, banking circles suggest that the axed governor had developed serious differences with the finance minister over the economic policies, which cost Mr Anwar his chair.

The SBP act 1956 provides: “At any time when the office of governor is vacant, the federal government may appoint an acting governor provided that the office of governor shall be filled in within a period not exceeding three months”. Mr Anwar was appointed governor during the tenure of Pakistan People’s Party. He took the charge of his office on Oct 20, 2011 for a three-year term.

Former president of the National Bank of Pakistan, Ali Reza, discussing the issue with Dawn agreed that it would be best to have a fully functional regulator. Yet, he insisted that the posting as ‘acting’ does not necessarily compromise the appointee’s power to do his job effectively. He thought that the government appointed ‘acting’ heads when it was on the lookout for the best man for the job. He was amused on suggestion that in that respect, the government ‘makes haste slowly’.

Most other people are however convinced that with the sword of Damocles hanging on his head, an ‘acting’ chief of a regulatory body is apt to lack ‘motivation’. “A temporary or acting head can only fully function with independence if he has the essential elements of grit, gumption and guts,” says a former chairman of the SECP, who due to his arguably strong regulatory measures, made many enemies during his tenure at the SECP and then at the CCP.

Another former regulator, who also asked not to be named, asserted that where appointments are made ‘until further orders’, without consideration to transparency and merit, the government can scarcely absolve itself of the accusations of mala fide intentions.

But interestingly, the three-year term is no guarantee for the continuation on the post for that period. It can be snapped anytime at the pleasure of the government. In case of the SECP, it was most pronounced when former prime minister Shaukat Aziz removed the then SECP chairman Tariq Hasan after the man dared to openly criticise the then president Pervez Musharraf for his alleged role in the stock market crisis of 2008.

And lately, Mr Dar showed SBP governor Yaseen Anwar the door on Feb 1 — nine months before the completion of his three-year term on Oct 20, 2014.