Shahid Kradar who had gone back to Lahore after submitting his resignation as governor SBP a few days ago, returned to Islamabad on Thursday on the request of the Finance Minister Abdul Hafeez Shaikh. – File Photo by Reuters

ISLAMABAD: With most people in the country’s financial circles still trying to figure out the main issue behind Shahid Kardar’s decision to resign as governor of State Bank, federal Finance Minister Dr Abdul Hafeez Shaikh has been making last-ditch efforts to persuade him to withdraw his resignation.

Mr Kardar, who had gone back to Lahore after submitting his resignation a few days ago, returned to Islamabad on Thursday on the request of the minister. Sources in the finance ministry said Dr Shaikh had a marathon meeting to iron out the differences with Mr Kardar.

Although both sides were tight-lipped about the outcome of the meeting, a source indicated that there was an outside chance that the central bank governor might reconsider his decision to quit the post.

There have been differences of opinion between Mr Kardar and the government, particularly over the issue of the State Bank’s autonomy.

The pressure from some PPP members for a more liberal policy vis-à-vis government borrowing from commercial banks was also a point of contention. However, mystery remains over the main issue that triggered the extreme action which came soon after Mr Kardar met President Asif Zardari earlier this week.

Officials pointed out that like his predecessor Salim Raza and former finance minister Shaukat Tarin, Mr Kardar had difficulty in persuading members of federal cabinet over financially taming the state-owned enterprises and implementing economic reforms as per promises made to International Monetary Fund.

“While the implementation of economic reforms is mostly a political decision, the heat is being faced by economic managers,” said an official.

Sources in the finance ministry said Dr Shaikh not only had great respect for Mr Kardar but he was also conscious of the negative impact the SBP governor’s resignation would have internationally, including the way it might affect some IMF programmes aimed at assisting Pakistan financially.

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Balanced approach
Updated 02 Jun, 2023

Balanced approach

Only a legitimate government may be able to take the country out of its present crisis.
Rise in attacks
02 Jun, 2023

Rise in attacks

AN enduring security dilemma for Pakistan has been the issue of cross-border havens in Afghanistan for militants,...
Narrowing the gap
02 Jun, 2023

Narrowing the gap

THE rupee made a substantial recovery of 11.5 against the dollar in the open market a day after the State Bank...
Free, fair & timely
Updated 01 Jun, 2023

Free, fair & timely

The stakeholders need to take a step back and let democracy take its course.
Virtual SCO summit
01 Jun, 2023

Virtual SCO summit

HOSTING multilateral summits is a matter of great prestige for states, as world leaders gather at the same table to...
Missing anchorperson
Updated 01 Jun, 2023

Missing anchorperson

IT gives insight into the obduracy of those in whose custody Imran Riaz Khan is being held that multiple appeals ...