The government has approved the appointment of external members of the Monetary Policy Committee for a period of five years.
Sources said that the Finance Ministry on March 9, 2022, circulated the summary with regard to the nomination of External members for the monetary policy committee by the federal government.
The Finance Division had moved a summary for the Cabinet in the last week of January 2022 for the re-appointment of Dr. Naved Hamid, for a term of three years, in terms of Section 9D (2) of the SBP Act, 1956, as an external member of the Monetary Policy Committee (MPC) of SBP, which was approved by the Cabinet on 15 February 2022.
Meanwhile, the SBP (Amendment) Act, 2022, was promulgated on 28 January 2022, in which the relevant section of the terms of office for the appointment/re-appointment of external members of the Monetary Policy Committee has been substituted for the period of five (05) years, in terms of section 14 (2) of the SBP (Amendment) Act, 2022.
“As the terms of office for the appointment/re-appointment of external members of the Monetary Policy Committee (MPC) have been substituted for a period of five (05) years after the promulgation of SBP (Amendment) Act, 2022, therefore, Finance Division propose that the decision of the Cabinet in Case No. No.69/05/2022, dated 15 February 2022 for appointment of Dr. Naved Hamid as member MPC of SBP may be reviewed in light of Section 14 (2) read with Section HA (3) of the SBP (Amendment) Act, 2022, for a term of five (05) years,” the circular stated.
