ISLAMABAD, Dec 29: President Asif Ali Zardari has appointed Saleem Raza as governor of the State Bank of Pakistan at a time when the central bank will be required to play a major role in implementing International Monetary Fund’s conditions attached to a $7.6 billion bailout package.

Mr Raza, 62, will take over on Jan 2, replacing Shamshad Akhtar whose three-year term ends on Jan 1. He is currently the Chief Executive of the Pakistan Business Council. He is elder brother of the president of the National Bank of Pakistan (NBP), Mr Ali Raza, and son of renowned bureaucrat Hashim Raza. He is a member of the government’s advisory council on finance.

Former IMF director Mohsin Khan and former chief economist Dr Nadeemul Haq were also considered for the post.

After his appointment, Mr Raza called on Prime Minister Yousuf Raza Gilani.

According to a handout, the prime minister expressed confidence that the new SBP governor would strive to the best of his abilities to meet the enormous economic challenges facing the country.

Mr Raza said he would try to streamline the monetary policy.

He also held a meeting with Prime Minister’s Adviser on Finance Shaukat Tarin to review the position of economic indicators following the release of the first tranche of the IMF package.

According to sources, he said he would try to overcome the liquidity problem of the banking sector and improve the working of central bank for stabilising the rupee.

He assured the prime minister and the adviser of his full support in implementing the ‘home-grown IMF stabilisation programme’.

It was decided that the monetary policy would stay unchanged for now, the sources said.

Talking to Dawn, Mr Tarin said the government had appointed a person who was an economist and also had a vast experience in the banking sector. “Mr Raza has 35 years of experience in the banking sector,” he said.