Finance czar commits to continuing caretakers’ policies

Newly appointed Finance Minister Muhammad Aurangzeb laid out his singular agenda: to focus on the implementation of much-needed reforms and secure a new deal with the International Monetary Fund (IMF) to pull the economy out of crisis.

“No debates, no waste of time, just a steadfast commitment to implementation,” the former Habib Bank chief said soon after being sworn in at a ceremony held at the Presidency.

Mr Aurangzeb is the third banker to hold the position of finance minister, after Shaukat Aziz and Shaukat Tarin. His appointment was the highlight of the oath-taking ceremony, which drew a large audience. Several of those in attendance were heard discussing the appointment of the career banker as the new finance czar, a departure for the PML-N, which has traditionally persisted with Sharif family confidant Ishaq Dar at the helm on at least four occasions.

In a brief but frank conversation, Mr Aurangzeb expressed his commitment to implementing all policies put into place by the caretaker government. “I must commend the policy measures of the caretaker government, which have helped improve economic indicators,” he stated. He said that Pakistan would persist in its discussions with Fund officials to secure the release of the final tranche of the soon-to-expire $3 billion loan package. He attributed the successful negotiation of this deal to Prime Minister Shehbaz Sharif, who secured it during his 16month tenure at the helm of the previous Pakistan Democratic Movement (PDM) government.

“Had this deal not been secured, the current economic landscape would have been markedly different,” he noted. On the need for a new agreement with the IMF, Mr Aurangzeb revealed that his team was poised to commence discussions for a fresh three-year arrangement to secure a substantial loan, with a minimum value of $6 billion.

“The exact amount of the package is yet to be determined,” he said, emphasising that there will be no delay in initiating talks for this new agreement with the IMF. Mr Aurangzeb also stressed the need for a clear and decisive plan for privatisation, as per the prime minister’s instructions.

“We are left with no choice but to execute a robust privatisation plan,” he asserted, emphasising that this was the only viable strategy to create some fiscal space. The minister assured that his economic team will take measures not only to minimise government expenditures, but also enhance revenue collection.

Talking about the Federal Board of Revenue, the country’s tax authority, the minister admitted his unfamiliarity with the reform measures taken by the caretaker government.