Who will be the caretaker economy czar?

After the arrival of the caretaker prime minister, the headhunt is on in earnest for suitable candidates to fill cabinet positions – except one. But can Ishaq Dar continue as economy czar?

By Muhammad Ali

ISLAMABAD: Caretaker Prime Minister has started to look for suitable candidates to serve on his cabinet, and as would be expected, all members of Shahbaz Sharif’s cabinet are out of contention – with one notable exception: Sharif’s economy czar Senator Ishaq Dar.

To be sure, there are other names being thrown around in the media as potential candidates for the post of caretaker Finance Minister including Tariq Bajwa, Sultan Allana, Dr Ashfaque Hassan Khan, Dr Reza Baqir, etc.

However, Dar somehow believes he is still in the race, which is why he was the only minister of the Sharif cabinet not feted with a farewell party. The question, however, is, will he be allowed to continue in office under the caretaker set up?

Dar, whose come-from-behind success with the International Monetary Fund (IMF) won Pakistan a one-year, USD 3 billion Stand-By Arrangement (SBA) a while back, rightly expects his policies to continue through the tenure of the caretaker government to keep the SBA on track.

Staying on the right side of the IMF for the duration of the SBA is important for Pakistan’s continued access to international financial markets as well as because of the direct liquidity injections due under the programme from the IMF, considered key to staying solvent on external sector payments.

This is why the continuation of his policies is a given, supported by all stakeholders of the Pakistani state, irrespective of who formally helms the Finance Ministry.

Yet, Dar would like to continue in person for best results, and given that he is a technocrat who does not contest popularity polls, the Election Commission of Pakistan (ECP) may just allow him to continue. But we will know for sure only when the ECP has had its say on the matter.

If Dar cannot continue in person, he would like one of his nominees, Tariq Bajwa or Tariq Pasha. The final decision in this matter rests with caretaker Prime Minister Anwar Ul Haq Kakar.

Kakar has been notified as the caretaker prime minister, but is yet to be sworn in to the office. He is expected to be administered the oath of office on August 14, 2023 at 3:00 pm – after PM Shahbaz Sharif has participated in the Independence Day ceremony.

The names of other hopefuls for the office of Finance Minister – including Sultan Allana, Shahbar Zaidi, Dr Reza Baqir, and Dr Ashfaque Hassan Khan – will come under consideration only if Dar fails to secure the position for himself or one of his nominees.

Some other economists from Lahore are also in the run for the position. Whoever eventually rises to claim the position will have on his shoulders the arduous burden of keeping the IMF program on track, because the programme’s failure potentially holds grave consequences for Pakistan’s economy.