Pakistan has its third finance minister in weeks. The prime minister appointed noted banker Shaukat Tarin as the country’s finance minister in yet another cabinet reshuffle. The PTI government has now had four finance ministers in three years, raising concerns over inconsistencies in economic policies. The federal cabinet has been reshuffled at least six times since the PTI came to power.
Tarin, who served as finance minister from 2009-2010, is also the second PPP-era lawmaker picked to fix the fledgling economy. He has replaced the young and dynamic Hammaz Azhar whose short stint was characterised by the cabinet turnaround on reviving trade with India. Azhar’s abrupt removal is also surprising as the prime minister was satisfied with his performance and wanted him to continue on a long term.
A month ago, the prime minister unceremoniously sacked economist Hafeez Shaikh after being unimpressed with this performance despite claiming that the economy was on track to recovery. The government wants to shift from stabilisation to growth and focus on development projects, a view which Tarin is likely to endorse. It is also surprising that the government has appointed yet another technocrat to the coveted position. Tarin was already part of the Economic Advisory Council and has been elevated to look after the financial affairs of the country.
The prime minister has blamed previous governments for the economic crisis but has still appointed members of the opposition as rescuers. Both Hafeez Shaikh and Tarin served in Gilani’s cabinet. As the finance minister under the PPP government, Tarin signed the bailout program with the IMF and concluded the 7th NFC Award before quitting without completing his tenure to start his own bank. He has been a vocal critic of the government economic policies. It needs to be seen what wonders he can achieve this time around.
The government should develop a coherent economic strategy rather than experimenting with different financial and economic players. Economic growth is forecast at a dismal 1.5 percent and Pakistan has already borrowed $2 billion from the IMF. The prime minister has formed a new economic team in his third year which will start afresh to develop economic policies. Though the government wants to provide relief to the public, it should understand the realities rather than cabinet reshuffling and experiments.
