PM Shehbaz had established a committee to evaluate a proposal permitting dual nationals to hold significant positions in the central bank.

Last year, a private bill was submitted to the National Assembly Secretariat seeking a ban on judges holding dual nationality, days after the Islamabad High Court slammed a ‘malicious’ social media campaign against Islamabad High Court Justice Babar Sattar.

The bill sought amendments to articles 177 (appointment of Supreme Court judges), 193 (appointment of High Court judges), and 208 (officers and servants of courts) of the Constitution.

According to current laws, dual nationals are ineligible to serve in Parliament, and a similar restriction was applied to management and policy roles within the central bank in 2022.

The finance ministry had submitted a summary for cabinet approval to amend the SBP Act 1956, seeking to allow dual nationals to become deputy governors and to legalise the use of cryptocurrencies.

The restriction on dual nationals serving in key roles at the SBP was first introduced in January 2022 after significant changes to the SBP Act, which were influenced by the International Monetary Fund and the preferences of the former governor. But the IMF did not recommend this restriction.

The government proposed changing Section 13 of the SBP Act 1956, which currently disqualifies anyone with dual nationality from being a governor, deputy governor, director, or member. The new amendment suggests removing the phrase “having dual nationality,” effectively lifting this restriction.

Some cabinet ministers in a meeting expressed concerns about allowing dual nationals in important SBP positions, arguing that they often return to their home countries after their term ends. Finance Minister Muhammad Aurangzeb, who gave up his Dutch nationality to take office, argued that the central bank needs specialists and should allow dual nationals to fill such roles.

The federal government appoints deputy governors based on recommendations from the SBP governor and consultations with the finance minister, using a merit list.

Last month, the Senate Standing Committee on Cabinet discussed a bill that would prevent civil servants from having dual nationality. PML-N Senator Dr Afnanullah Khan proposed an amendment to the Civil Servants Act 1973, arguing that civil servants pledge loyalty to Pakistan and cannot be loyal to two countries at once.

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The Cabinet Division has asked the committee led by Planning Minister Ahsan Iqbal to review the proposed amendments regarding dual nationals in the draft SBP Amendment Bill 2024. They need to consider whether such amendments should be accepted, rejected, or modified and whether exemptions should be allowed for dual nationals under special circumstances.

The committee will also assess whether the current restrictions for dual nationals at the SBP should apply only to the central bank or also to other government organizations. The Cabinet Committee has agreed that the clause disqualifying dual nationals in Section 13A of the SBP Act may be removed as long as dual nationality is disclosed.