The Finance Minister of Pakistan – Asad Umar has resigned ahead of securing the crucial multi-billion dollars International Monetary Fund (IMF) bailout package for the cash-strapped economy.
It is believed he resigned owing to the continuous pressure from opposition and business fraternity, over the way he has handled the struggling economy.
He had recently returned from a United States (U.S.) trip where the details of IMF bailout package were finalised. He mentioned that he has taken the consent of Prime Minister of Pakistan – Imran Khan to not to take any Cabinet position.
Speaking on his resignation, he said, “As part of a cabinet reshuffle, Prime Minister desired that I take the energy minister portfolio instead of finance. However, I have obtained his consent to not take any cabinet position.”
He further added, “Later, while addressing the media, he said, “I don’t know if there has been a conspiracy or not (to remove me) but all I know is that my captain (Imran Khan) wanted to see me in the role of the energy minister. I did not think that would be a great idea, so I refused.”
The sluggish economy of Pakistan is seeking U.S. $ 8 billion package from the IMF to bail itself out from a severe Balance Of Payments (BOP) crisis.
The BOP is a summary of all transactions that a country’s individuals, companies and Government bodies complete with individuals, companies and Government bodies outside the country. These transactions consist of imports and exports of goods, services and capital, as well as transfer payments, such as foreign aid and remittances. A country’s BOP and its net international investment position together constitute its international accounts.
Talking about IMF, Umar said, “We have finalised the IMF agreement on much better terms than before. It is the time to take difficult decisions. I have made these decisions, I refused to take the decisions that would have crushed the nation.”
For the records, Pakistan has so far received a total of U.S. $ 9.1 billion as financial aid from its all-weather friend China, Saudi Arabia and the United Arab Emirates (UAE), in the current fiscal year.
It is not yet known who the new Finance Minister of Pakistan will be. The new Finance Ministry’s first major task would be to finalise the much-needed IMF bailout package. Besides, a mission of the IMF is also expected to visit Islamabad soon. This would happen after the spring meetings of the World Bank Group. The agreement is expected to be signed in April 2019.
Earlier, the Pakistani media had reported that a major Cabinet reshuffle is likely to happen. However, Minister of Information and Broadcasting, Pakistan – Fawad Chaudhry has denied all such reports.
