Former SBP governor Shamshad Akhtar dies at 71

Shamshad Akhtar, the first and only woman to serve as governor of the State Bank of Pakistan and a two-time caretaker finance minister, passed away at the age of 71, the Ministry of Finance said on Saturday.

At the time of her death, Akhtar was serving as chairperson of the Pakistan Stock Exchange, marking a rare distinction of having led the country’s central bank, overseen fiscal management, and headed a key capital markets institution.

She served as 14th governor of the State Bank of Pakistan from 2006 to 2009 and later assumed the role of caretaker finance minister during the interim governments formed ahead of the 2018 and 2024 general elections.

Born in Hyderabad, Akhtar received her early education in Karachi and Islamabad and was known for her strong academic background. She graduated with a BA in Economics from the University of Punjab in 1974 and later earned an MSc in Economics from Quaid-e-Azam University, Islamabad. She went on to obtain an MA in Development Economics from the University of Sussex in 1977 and a PhD in Economics from the UK’s Paisley College of Technology in 1980.

Akhtar was also a Fulbright postdoctoral fellow and served as a visiting fellow at Harvard University’s Department of Economics in 1987.

President Asif Ali Zardari expressed profound grief over the passing of former State Bank of Pakistan governor Shamshad Akhtar, paying tribute to her lifelong commitment to public service and her role in strengthening economic governance and financial management in the country.

In a post shared on X by Presidential Spokesperson Murtaza Solangi, the president said he was deeply saddened by Akhtar’s death and acknowledged her contributions to the field of economics and public finance. He prayed for the elevation of the departed soul’s ranks and extended heartfelt condolences to the bereaved family.

Pakistan Stock Exchange also mourned the loss of its late Chairperson. “The Board and Management of Pakistan Stock Exchange express deep sorrow on the passing of Dr Shamshad Akhtar, Chairperson PSX.  Dr Akhtar was a distinguished leader whose legacy and service will always be remembered, PSX wrote.

An economic stalwart

Pakistan’s economic and financial community is mourning the loss of Dr Shamshad Akhtar, who was widely regarded as one of the country’s most influential economic managers. Dr Akhtar played an active, hands-on role during Pakistan’s most difficult financial periods, contributing to policy responses to balance-of-payments pressures and participating in critical negotiations with the International Monetary Fund (IMF) to help stabilise the economy.

She broke new ground in 2006 when she became the first woman to head the State Bank of Pakistan, serving as its governor at a time when banking sector reforms and monetary tightening were central to economic management. Her tenure is remembered for strengthening financial regulation and enhancing the independence and credibility of the central bank.

Dr Akhtar later returned to public service as finance minister in caretaker governments formed in 2023, where she was entrusted with managing fragile economic conditions, engaging with international lenders, and ensuring continuity in fiscal and monetary policy during political transitions.

Beyond Pakistan, she built an exceptional global career, holding senior positions at leading international institutions. These included serving as Vice President of the World Bank for the Middle East and North Africa, Executive Secretary of the UN’s ESCAP, and senior leadership roles at the Asian Development Bank, where she oversaw development, governance, and financial programmes across Asia.

In addition to her public sector roles, Dr Akhtar also served in leadership positions within Pakistan’s capital markets, including her association with the Pakistan Stock Exchange (PSX), where she was Chairperson PSX Board and contributed to improving corporate governance, market transparency, and investor confidence.

While talking to the Express Tribune, former finance minister Miftah Ismail expressed deep sorrow over the demise of Dr Akhtar. “It is deeply saddening to hear about Dr Shamshad Akhtar’s passing. She was a great Pakistani who made her name both nationally and internationally. May she rest in peace. Ameen,” he said.

“Dr Shamshad Akhtar was more than an accomplished economist. She was a trailblazer who opened doors for women in the financial industry. Her leadership, integrity, and resilience made her a role model for generations aspiring to serve in economic and public policy roles.,” commented Arif Habib Limited Head of Research  Sana Tawfik.

I always admired her. As a woman in a traditionally male-dominated financial world, Dr Akhtar proved that competence and courage can redefine leadership. She inspired countless young women to believe that they, too, belong at the highest decision-making tables, Tawfik added.

PSX CEO Farrukh H. Sabzwari also expressed sorrow and paid rich tribute to Dr Shamshad Akhtar. When contacted, he said, “It is with profound sorrow that we mourn the passing of Dr Shamshad Akhtar, Chairperson of the Pakistan Stock Exchange. Her visionary leadership, dedication, and unwavering commitment to strengthening Pakistan’s financial landscape have left an indelible mark on our institution and the country.”

“This is a great loss not only for PSX but for Pakistan as a whole. We extend our deepest condolences to her family and loved ones, and we honor her legacy with gratitude and respect,” he added.

Dr Akhtar’s legacy extends far beyond the offices she held. Her passing marks the end of an era for Pakistan’s economic leadership, with colleagues and policymakers remembering her as a steady hand during crises and a respected voice on the global financial stage.