In the midst of negotiating a bailout deal with the International Monetary Fund, Pakistan’s government suddenly finds itself is in search of a new finance minister after Asad Umar’s exit.
Umar, a former CEO of Engro Chemicals who just a few days returned from negotiations with the Fund officials in Washington D.C., has resigned.
So, who is going to be assigned the toughest cabinet portfolio?
Prime Minister Imran Khan has appointed Dr. Abdul Hafeez Sheikh as adviser on Finance, according to a notification.
Umar’s departure comes after widespread criticism of his lax approach to high-stakes issues and speculations that he was on his way out in the face of daunting financial crisis that Prime Minister Imran Khan’s government is trying to deal with.
The next minister will also have to take care of upcoming federal budget and a key tax amnesty scheme.
“As part of a cabinet reshuffle PM desired that I take the energy minister portfolio instead of finance. However, I have obtained his consent to not take any cabinet position.
“I strongly believe @ImranKhanPTI is the best hope for Pakistan and Inshallah will make a naya Pakistan,” Asad Umar tweeted ahead of formal announcement at a press conference in the capital, Islamabad on Thursday.
With Umar no longer in charge of the finance ministry, who will replace him remains unanswered for now but a decision to fill the critical slot is likely very soon.
Prime Minister Khan had meetings with Minister for Energy, Omar Ayub Khan and former Central Bank Governor, Dr. Shamshad Akhter on Wednesday. Former finance minister Shaukat Tarin, a banker by profession, had been offered the coveted post of the adviser on finance but he declined, according to some media accounts.
Omar Ayub, the grandson of late military dictator, General Ayub Khan, who has served as the junior minister for finance during General Musharraf regime, appears to be the frontrunner candidate at the moment.
But former SBP Governor Akhtar, who has a lot of experience, is also being seen as a likely choice for Khan, who despite getting assistance from some friendly Arab countries and China, has yet to address the balance of payment crisis and a huge trade and deficit gaps.
Before he met with Prime Minister, Omar Ayub was asked by reporters if he had been called to be entrusted with the portfolio of finance minister, he neither confirmed nor denied.
“I am going to the PM Office for a meeting which had been scheduled from before. We have given approval for the load management plan during Ramazan,” Omar Ayub said.
But the PM Khan has to appoint the new finance minister immediately.
“We business community are of the view that there should be political and economic certainty in the country as at present , no body is making any investment in Pakistan due to uncertain conditions,” Faheem-ur-Rehman Saigol, Vice President of Lahore Chamber of Commerce and Industry (LCCI) says.
He said that Asad Umar should have stepped down earlier to bring the country out of economic uncertainty.
“ But it is never too late. We hope that the next finance minister will be able to deal with the issues like IMF Bail out talks, upcoming federal budget and the amnesty scheme,” LCCI Vice President said.
The piece has been updated @1:50 pm EST incorporating appointment of Dr. Abdul Hafeez Sheikh as adviser on finance.
