KARACHI: The banking fraternity and the corporate sector praised government for the appointment of members and chairman of the board of directors of the National Bank, describing it as the “starting point of the long and tedious process of reforms in state-owned entities”.

“Muneer Kamal is a good choice,” said Ali Raza, former chairman and president of NBP when asked about the newly appointed chairman.

He said Kamal is a seasoned banker with vast experience. He also supported appointment of two directors on the NBP board.

Another banker told Dawn that the “reshuffling of the board of directors and appointment of meritorious individuals at commanding positions in the public sector and commercial organisations is not sufficient but a necessary condition. I hope the government would not let the process be politicised”.

He however expressed his reservations particularly on appointment of retired bureaucrats with political leanings on the board of the NBP.

Muneer Kamal told Dawn on Wednesday that his new job was challenging as NBP “is not only the largest bank, it also has a sound record”.

“I believe the NBP and the overall banking sector in Pakistan is in good shape”, he said.

About large investment by banks in government papers, he said: “There is a need to change the trend and it would change with the growth in the economy”.

Large banks have been investing as much as 80 per cent of total lending into government papers to avoid risk and maintain profitability.

He attributed the trend to low economic growth that resulted into low demand from the private sector.

The new chairman also praised the expertise and skills of the newly appointed director of NBP, Furrukh Qayum.

When asked about what target he would pursue at NBP, Kamal said, “betterment of the bank.”