Economic challenges: PM struggles to find right person to head MoF

Subsequent to taking oath, Prime Minister Nasir-ul-Mulk began the process of selecting his cabinet members with the caretaker finance minister considered critical in dealing with various challenges facing the economy, informed sources told BR.
Sources in the Finance Ministry stated that the caretaker finance minister''''s job will be very challenging as he would have to deal with a range of serious issues immediately ranging from raising the price of petroleum products, a decision that is taken on the last day of each month but was delayed by the Abbasi-led administration fearing a political backlash to dealing with an unsustainable budget deficit, an unsustainable current account deficit, a rising energy circular debt with capacity to choke generation and dwindling foreign exchange reserves not sufficient enough to meet more than a month''''s imports. The country will also make a debt repayment of $2.5 billion in June and the Financial Action Task Force meeting is also scheduled in June.
Various names are under consideration for the position of caretaker finance minister and priority must be to nominate a credible and experienced economist for the office in consultation with Finance Division to minimize economic risks to the economy, sources suggested. Former Finance Minister Dr Hafeez Pasha is the only one under consideration who not only has the requisite qualifications but also experience as he has served as the country''''s finance, planning and commerce minister. Additionally he is well respected internationally.
Most importantly, they point out, that Dr Pasha has highlighted the deficiencies in the calculations of key macroeconomic data by Pakistan Bureau of Statistics which has disabled previous finance ministers from taking informed decisions. Some other names are also in consideration, sources indicated, including two former governors of State Bank of Pakistan (SBP), with both having spent the bulk of their careers in multilateral institutions, Dr Shamshad Akhtar and Dr Ishrat Hussain. Names of former finance minister Dr Salman Shah, Secretary Finance Dr Waqar Masood, former economic advisor Dr Ashfaque H Khan and former Secretary Finance Abdul Wajid Rana and Sultan Ali Alian are being discussed in the media.