Comments on: Yasin Anwar’s appointment

By: Shahzad Kazi

Shahzad Kazi — Thu, 01 Jan 1970 00:00:00 +0000

In fact most Pakistanis that I have met overseas seem to be more concerned with the state of affairs in Pakistan versus the Pakistanis living in Pakistan. Not only this, most of the charitable donations to Pakistani NGOs come from overseas Pakistanis, whether single or dual nationality holders. Anyone who is born in Pakistan has the right to be called Pakistani and no one can deny this right by insisting that they give up their nationality.

Unfortunately several Pakistanis get hung up on issues of dual nationality or non-residency rather than looking at the qualifications and capabilities of individuals. In fact countries like the US and Canada have progressed because they have allowed talented people of all nationalities to migrate and contribute to the economy and society.

By: Neo

Neo — Thu, 01 Jan 1970 00:00:00 +0000

Argument well taken, Lowering of the policy rate has got a welcome sign in the market and the business. Since, Keynesian do believe that reducing the cost of borrowing will bring a boost in the business activity in times of recession. But other variables should also be taken care of. the situation is kind of Deja vu. The same happened earlier in the times of Mr. Shokat Aziz. the cheap money may land in the wrong hands which will spiral up the cost push inflation through speculative spending and investments. Previously, the demand booster was introduced in the market by Mr. Shokat Aziz at the whims of businessmen and the same cultus which was sold at Rs. 630,000 was repriced at 830,000 within 3 years.
Now, the banks ouwld surely be looking for to lend to the business, but all wont be given to the productive purposes. Nor do we have a mechanism to ensure that the borrowing has been utilized for which it was meant to be.
I believe, the Governor should be an economist as well an expert in public policy and management, because SBP had a bitter experience with accountants.

By: Asif

Asif — Thu, 01 Jan 1970 00:00:00 +0000

This isn’t an amazingly difficult task. If you have 2 years to study this subject in your spare time, I promise you would have more solutions than the Pak Govt faces today.

By: ejaz

ejaz — Thu, 01 Jan 1970 00:00:00 +0000

From the perspective of economics, the sharp cut (by any standards) in the policy rate is good as well as bad. since the composition of our GDP is sharply changing with major income coming for services so from that perpective, business will be encouraged to borrow at lower rate hence economy will pick pace as business thrive. Lower rates would discourage bank from lending to government and banks would be looking to extend credit to private sector who would boost demand. Having said that, we shall also keep in mind that government is the major beneficiary of this cut in policy rate as their mark up which previously was accruing at a higher rate would now be accruding at relatively lower rate hence government is in a position to repay the loan at lower markup and borrower more which would widen the domestic fiscal deficit resulting in inflation hence forcing central bank to increase the policy rate again. In economics, you cannot have one absolute answers to a specific problem, a lot of other problems pop up simultaneously therefor the decision making has to be optimal to strike the right balance.

All of above is said on the economics theory that policy rate is key to controlling inflation (inflating targeting) but recent nobel laureate for economics has come up with tools which would unentangle the effects of policy rate on inflation. If that happens to be true, there would be enormous changes in the way economic decision are taken at central bank. I am curious to see though.

P.S. I personally feel the governor of the central bank shall be an economist. Mr. Yaseen would not be the right choice for the elite position from that perspective, neverthless he’s got a team of economists who actually design policy and they are fully capable.

By: Umar Aftab

Umar Aftab — Thu, 01 Jan 1970 00:00:00 +0000

Completely agree. There are many sectors in Pakistan with severe skill gaps. I will refrain from commenting on the the competence of the current SBP Governor (because I do not know enough about him) but Pakistan’s economy could get a serious boost from the expertise gained by its expat workers. Pakistan, a country with a negligibly small investment banking sector has produced top notch investment bankers. If some of them are attracted back to Pakistan they could work miracles by channeling internal and external investment in the right sectors. The Pakistani management consultants working in the UK, USA and the ME region create value for global companies by organizing their structures, operations and investments. Accountants and consultants in Pakistan regard this as wastage of resources only because of their lack of experience and knowledge. SBP and SECP are held back in improving the governance in the corporate sector because of lack of appropriately experienced professionals in the country. Pakistani stocks, bonds and commodities traders make billions of dollars for their employers around the world. But people with vested interests are worried about dual nationalities. Obviously, the government should ensure that its functionaries do not have any conflicts of interest when performing their duties but barring all dual nationals from state service would mean depriving the country of an exceptional talent pool. Merit and nothing else should be the criteria for appointing state functionaries.

I would go to the extent of saying why doesn’t Pakistan employ a gora Auditor General. After all the money is also coming the west. And a non-Pakistani is less likely to have conflicts of interest in certain positions in Pakistan.

By: Jahiz

Jahiz — Thu, 01 Jan 1970 00:00:00 +0000

extremely well put. Our people seem to be died.
The ones who got out have managed at least to keep their self respect and achieve something in life.

By: Afzal Mir

Afzal Mir — Thu, 01 Jan 1970 00:00:00 +0000

Looking at the track record of high position appointments by the present government does not give us any hope that the things will improve. Look what happened at PCB, Pakistan Railways, PIA and many many others.

By: Waqar

Waqar — Thu, 01 Jan 1970 00:00:00 +0000

A great banker of great integrity, with much to offer to the nation. Right man at the right time. Good luck to him.

By: Asif

Asif — Thu, 01 Jan 1970 00:00:00 +0000

Lets try to understand the culprits of Inflation.
1. Budget Deficit due to corruption, subsidies and lack of vision.
2. Trade Deficit (US$9.261 billion in 2009 and $3.946 billion in 2010.
3. Imported Inflation as BoP are settled in US$.

No are less than 0 chances that the Govt will fix this before the rupee collapses. Pakistanis should shun the Rupee before the Govt trashes it.

By: Muneer

Muneer — Thu, 01 Jan 1970 00:00:00 +0000

If passport does not matter, then would you accept an Indian as SBP governor ?