Dar, the close aide of elder Sharif, wasn't at Shehbaz Sharif's first meeting
Business
Renowned banker Muhammad Aurangzeb comes into limelight
ISLAMABAD (Dunya News/Web Desk) – Ishaq Dar – a close aide of PML-N supremo Nawaz Sharif – was missing when Prime Minister Shehbaz Sharif chaired a meeting of economic team on Monday soon after taking oath of his office for a second term.
Certainly a huge news from several angles, if Dar isn’t the economic czar in the PML-N government led by a Sharif, although he isn’t the elder.
It was an important meeting given the current economic mess Pakistan is in and Shehbaz had listed debt burden as the main challenge for the new government in his speech to the House after winning the confidence of 201 members.
A statement issued by the PM Office read that the prime minister directed the economic team to begin talks with the International Monetary Fund (IMF) on an Extended Funding Facility (EFF) and expedite the privatisation of lossmaking state-owned enterprises (SOEs) – a process that has never gained momentum given the reluctance on the part of elected government due to the sensitive nature of the issue.
The only time privatisation was carried out without any hiccup was during 1990-93 – the first of three incomplete terms of Nawaz as prime minister – as the state-run banking system, barring the National Bank, was transferred to the private sector.
Late Sartaj Aziz was the finance minister back then at a time when Nawaz introduced trade liberalisation and other economic policies, which were soon replicated by India – completely transforming the eastern neighbour economically, socially and politically.
India is now world’s fastest growing major economy and the Moody's Investor Service has sharply raised its gross domestic product (GDP) forecast, following the strong momentum seen in the South Asian economy in recent quarters, which the ratings agency expects will continue into 2024.
And this fact is mentioned by media-shy Nawaz again and again, whenever he gets an opportunity, citing toppling his governments thrice has reversed the progress each time.
The question is: will the PML-N through the junior Sharif go through the privatisation process at a speed which is required under the domestic and external factors?
WHY THE REPLACEMENT
Dar has been credited with dealing the economic sanctions imposed on Pakistan after Nawaz decided to carry out nuclear tests in 1998 despite the foreign pressure and threats. He was again the economic czar when the PML-N supremo entered the Prime Minister House for his third stint amid crippling energy shortages and rising inflation.
Certainly, Dar tackled these issues successfully as Pakistan witnessed a massive and unprecedented boost in development budget – a trend which was soon reversed by the PTI government.
But his failure to arrest inflation, reverse rupee devaluation and slash interest rates during his last term as finance minister under Shehbaz-led PDM government made him even more controversial – a status he has enjoyed from very beginning for being the eyes and ears of the elder Sharif.
Meanwhile, the individual who was most prominent at Monday’s meeting was Muhammad Aurangzeb –a renowned banker who is associated with the Habib Bank Limited as the president and CEO since April 2018, as the prime minister issued guidelines for future line of action.
Aurangzeb, who received his BS and MBA degrees from the Wharton School (University of Pennsylvania), has a rich international banking experience of over 30 years.
One of the main reasons which may work against Dar is his strong opinion about the IMF for its policies and suggested solution. He has always been against currency devaluation and stands for lower interest rates. In fact, he considers the decision to devalue rupee as the factor which triggered Pakistan’s economic slide and favours slashing energy tariffs.
But with Pakistan in a dire need of an IMF programme, a hardliner Dar may be sacrificed in favour of an acceptable face. Let’s see what happens by the time cabinet is formed.
