The Finance Minister may be unpopular among his colleagues, but Prime Minister Sharif is stuck with him as Ishaq Dar is not returning any time soon.
By Muhammad Ali
ISLAMABAD: With an early return of his party’s veteran economy czar Ishaq Dar ruled out for now, the Prime Minister Shehbaz Sharif will have to learn to live with his existing team of economic managers, headed by Finance Minister Miftah Ismail, Independent Pakistan can report.
Dar, the only Pakistani finance minister to successfully complete an IMF program, lives in self exile in London along with his leader, former Prime Minister Nawaz Sharif. He is a member of Senate for his Pakistan Muslim League – Nawaz (PML-N) party.
After Prime Minister Shehbaz Sharif rose to power in April, there was widespread talk of his return to help stabilise Pakistan’s economy.
It was reported that Nawaz Sharif is unhappy with Ismail’s handling of the deal with the International Monetary Fund (IMF) and believes Dar could have done a better job. Dar himself is on the record saying he would never have agreed to free-float the rupee, which he believes is the reason for stellar inflation in Pakistan
However, the word now is that his immediate return is out of the question because he is still in the bad books of some powerful personages.
Dar has been convicted in absentia for corruption since his departure in 2017 on medical grounds. The PML-N leader says the cases against him are trumped up and politically motivated.
Nevertheless, continued opposition to his cause by the establishment means the government of Pakistan Democratic Movement (PDM) would not be able to allow him any reprieve, and if he returns, he would be at the mercy of the courts, packed with judges PML-N perceives as hostile to it.
In any case, this little tiff has limited the options for PM Sharif. Ismail, who is not a parliamentarian, cannot only continue as Minister for Finance for six months. This means the government has only about a month left to get him elected to the National Assembly or Senate – or find his replacement.
Another option may be to appoint him as Advisor to PM on Finance and Revenues around mid-October 2022.
Some lobbying has been seen within the party, with some PML-N parliamentarians buffing their credentials for a federal cabinet post on economy. PML-N MNA Qaiser Sheikh is one of the contenders, but it is unclear how his bid will fare.
It is not known why the establishment is uncomfortable with Ishaq Dar. His return now seems linked with the fate of his leader Nawaz Sharif, who is expected to stage a comeback ahead of the next general election.
Dr Miftah Ismail’s qualifications to be the cabinet’s point man on economy are impeccable. He obtained his BS degree in Economics and Mathematics from Duquesne University, Pittsburgh, USA; and Masters and Doctorate degrees in Public Finance and Political Economy respectively from the Wharton School, University of Pennsylvania.
He has worked as an Economist at the IMF in Washington. He is a successful entrepreneur who, before joining politics, used to run Pakistan’s largest confectionery company.
In the public sector, he has worked as the head of Punjab Board of Investment and Trade, the Chairman of Federal Board of Investment, and briefly as Chairman of the Privatisation Commission.
Perhaps most importantly, it was none other than Ismail who took the reins of economy as Minister of Finance in 2018 after Dar’s exit in late 2017 following the ouster of Nawaz Sharif.
On the other hand, Miftah Ismail has earned the ill will of his party colleagues and leaders of other parties of the PDM coalition because of his inflationary policies. The CPI based inflation has crossed 27.3 percent while Sensitive Price Index (SPI), mainly comprising food items, stands at 42 percent.
Prime Minister Sharif is weighing options to have a Senate seat vacated to get Miftah Ismail elected. A complicating factor is that the move will require support from PPP if it wanted to elect Miftah Ismail from Sindh.
Another option is to appoint Miftah Ismail as Advisor to PM on Finance. Aisha Ghaus Pasha can then be appointed as full Minister for Finance, but she can as easily continue as Minister of State for Finance and Revenues.
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