Finance minister is an absconder!

The Accountability Court, by declaring Ishaq Dar, the federal Finance Minister, an absconder, nonetheless is powerless to compel Dar or the Abbasi-led cabinet to fire or suspend him. The old mantra of status quo politicians' being investigated for corruption - or for having wealth beyond known means of income as in the case of Dar - that cases against them are entirely politically motivated and that unless and until there is a conviction they are not constitutionally bound to resign is being repeated in Dar's case. However, not even his most ardent supporters can argue that Dar has demonstrated a moral high ground by leaving the country due to ill health post-Panama Papers verdict through a rather circuitous route for London. Criticism is being heaped upon Dar because a representative of the public in general and an individual empowered to take key economic policy decisions in particular must demonstrate a moral high ground greater than what one would expect from a member of the public. Thus Dar's decision to retain the portfolio and the Abbasi government's decision not to jettison him, or to send him on forced leave, or replace him with someone who can take decisions while he is in London is markedly at odds with the demands of the position and good governance.
Our neighbouring country India also has a poor record in this regard with 34 percent of its members of parliament with ongoing criminal cases against them and around 21 percent facing charges that, if upheld, would merit prison time; as in the case of Pakistan these are the people that Indian voters have put in power. Be that as it may, there has been no Indian finance minister who has faced charges as serious as those facing Ishaq Dar - charges that he detailed in his 45-page affidavit when he turned approver prior to the 10-year deal struck between Nawaz Sharif and General Musharraf's government.
What is further disturbing are reports that the Ministry of Finance is being run by Dar through available communication networks and evidence of this claim is the fact that all Dar policies are continuing, including extending the January 2017 export promotion package, announcing a mini-budget by increasing taxes (regulatory duties) to generate more revenue, and last but not least, heavy reliance on borrowing from the foreign commercial banking sector as well as mulling issuing sukuk/Eurobonds. The government has already procured 703 million dollars from the external commercial banking sector between July-September 2017 though it had budgeted 1 billion dollars for the entire year indicating that it may surpass last year's total of over 4 billion dollars.
It has also been reported that the Abbasi government plans to generate between 2 to 3 billion dollars from issuance of Eurobonds/sukuk and the rate of return would be determined after road shows in a few major financial cities of the world. It may be recalled that during the past four years, Dar agreed to a rate of return that was in excess of the market rate - 8.5 percent on one billion dollar 10-year Eurobonds, 7.5 percent on one billion dollar five-year Eurobonds and 6.5 percent on one billion dollar sukuk when the heavily indebted Greek government issued bonds at 5.5 percent. With political uncertainty added into the mix of shrinking reserves and exports it is likely that the rate would have to be in excess of 7.5 percent for a five-year tenor bond to attract potential investors - a rate that may not be economically feasible for the country. It is therefore imperative for the Cabinet to decide on the maximum rate to be allowed on sukuk bonds.
There is a growing clamour both within and outside the ruling PML-N to fire the finance minister and reports now indicate that he may be sent on forced leave. The blame reportedly rests with former Prime Minister Nawaz Sharif who is reportedly unwilling to allow the government to suspend Dar though he allegedly supports accepting his voluntary resignation. That unfortunately has not been forthcoming and one would assume that sending him on leave may be the only available but certainly not the desirable option for the incumbent cabinet.