ISLAMABAD: Saleem Mandviwalla has been appointed as new Finance Minister of Pakistan as Dr. Abdul Hafeez Shaikh resigned on Tuesday amid speculation that he may lead a caretaker government that must be set up before national elections scheduled for this spring, Dispatch News Desk (DND) reported. Mandviwalla was previously serving as the State Minister for Finance.
Dr. Shaikh had assumed the ministerial slot in April 2010 when Shaukat Tarin resigned after surfacing differences with Pakistan Peoples’ Party (PPP) leadership on different issues and also because of his personal reasons. Dr. Sheikh served as Minister for Finance for almost three years.
“He’s the government’s top nominee for the prime minister in the caretaker government,” said one of the officials.
Dr. Shaikh leaves as the Pakistan currency has slid to a historic low of 98 rupees against the dollar and the economy is beset by inflation, daily power cuts and plummeting foreign investment.
Pakistan only has enough foreign reserves left to pay for two months worth of imports. In 2008, that situation prompted a balance of payments crisis only ended when the International Monetary Fund offered a bailout package of $11 billion.
But in 2011, that program was suspended after Shaikh was unable to push through key reforms, most notably widening Pakistan’s tax base.
Financial analysts say that others in the ruling party share the blame for that failure. Most of Pakistan’s top politicians and their elite backers don’t pay taxes and are not keen to see reforms.
The IMF has said it will not consider rescheduling repayments of the $6.2 billion Pakistan still owes without a comprehensive plan for reform agreed on by all political parties.
DND
