KARACHI, Dec 30: The new governor of the State Bank of Pakistan is hopeful about economic prospects after tough measures taken to avert an economic crisis, including agreeing to an International Monetary Fund (IMF) lending programme.

Saleem Raza, the former head of Citibank in Pakistan who now heads the Pakistan Business Council, will take over as governor of the State Bank of Pakistan on Friday, replacing Shamshad Akhtar who completed her three-year term.

“I am positive as we’ve taken the fiscal pain and we’ve taken the monetary pain,” Raza told Reuters late on Monday, referring to cuts in government subsidies and rises in interest rates.

Raza declined to say if he intended to maintain a tight monetary stance. He would be in a better position to answer the question after taking office, he said.

Raza headed Citibank Pakistan for 5 years, from 1983 to 1987, and later worked as a banker internationally for many years.

Raza said he felt his experience was well-suited to taking over at the central bank and he was looking forward to his new post.

“As an international banker, you have to watch monetary and fiscal policy very closely because it affects exposure in all realms,” he said.

“After a point when you are looking at strategy and how you are going to grow the bank, fiscal and monetary policy are the most important things,” he said.—Reuters