Abdul Hafeez Shaikh, the man charged with steering Pakistan's economy, has wide financial and management experience and is likely to focus on tight fiscal discipline as inflation remains a threat. Shaikh, a former privatisation minister, will be put to the test as Pakistan's weak government attempts to energise a struggling economy battered by a Taliban militant insurgency and starved of foreign investment.
He must also try to strike a balance between policy demands by the International Monetary Fund, which provides critical financial support for Pakistan, and the government's desire not to alienate voters who could be hurt by those policies.
A senior government official said Shaikh has been offered and accepted the post of adviser to the prime minister on finance. Hafeez Shaikh will not be a full-fledged minister as he is not a member of parliament, but he is expected to have the same level of authority.
Shaikh's background as a general partner in the growth capital company New Silk Route Partners, which focuses on private equity opportunities across Asia and the Middle East, suggests he will pay close attention to market needs.
"He understands the local economy and also has the skills to negotiate with the IMF and other bilateral and multilateral donors," said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd. Having served as World Bank country head in Saudi Arabia, Shaikh will be in tune with what Pakistan needs to do to secure sustained international financial support - raising taxes, taming inflation and generating more revenue to meet expenditure.
But President Asif Ali Zardari will likely fight some tough measures for fear they could trigger social unrest and make him more unpopular. Zardari is politically vulnerable, under pressure to hand over some of his key powers to the prime minister. Some of his closest aides, such as the interior and defence ministers, could face prosecution under revived corruption charges.
In order for state finances to flow smoothly, Shaikh, 55, also needs the support of Pakistan's all-powerful military, which consumes a major part of the state budget. Respected former finance minister Shaukat Tarin's resignation announced last month raised speculation he was caught between the demands of the IMF, whose assistance depends on reforms, and the government.
Tarin negotiated an IMF emergency loan package of $7.6 billion in November 2008 to avert a balance of payments crisis. The IMF increased the loan to $11.3 billion in July. Shaikh served as privatisation and investment minister during the turbulent nine-year rule of former president Pervez Musharraf, a stint that may prepare him for uncertainty under Zardari.
During that period, he concluded transactions worth $5 billion. Investors may be comforted by his role as an adviser to countries mostly in Asia, the Middle East, Latin America, and his leadership of privatisation teams in telecommunications, aviation, banking and manufacturing. But there are plenty of challenges at home, including chronic energy shortages and a fight between the government and insurgents, which have eroded investor confidence.
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