Admitting of leaving economy in a difficult situation, Finance Minister Asad Umar on Thursday announced that he is quitting the federal cabinet and rejected Prime Minister Imran Khan's offer to head the Ministry of Energy. Addressing a press conference at the FBR House as well as in a social media message, Umar stated that the Prime Minister wants him to take charge as energy minister but he does not wish to take charge of any other ministry and would rather not be a part of the PM's cabinet anymore.
"Whoever comes will have to take difficult decisions and it is not miracle to bring prosperity in days. The new finance minister will have to stabilise the difficult economy. The impacts of IMF programme will be reflected in the upcoming budget which would be a difficult budget and the new finance minister will have to go for implementation," he said. He said that further changes in the cabinet will be announced on Thursday night or Friday morning. He also said whatever decisions are being made by the Premier are for the betterment of the country.
"As part of the cabinet reshuffle, the PM desired that I should take the portfolio of energy minister instead of finance. However, I have got his (the PM's) consent for not taking any position in cabinet. I strongly believe Imran Khan's PTI is the best hope for Pakistan and, God willing, will make a Naya Pakistan," Umar tweeted. Umar further said that he doesn't believe that it was a right move to make him energy minister. "But that does not mean I quit PTI. I always did and still believe that Imran Khan will build a Naya Pakistan," he said. He said that neither does he know if there was any conspiracy behind the decision to change his cabinet slot, nor is he interested to know about it.
Asked who is responsible for this development, whether there were some other politics at play, he said he isn't interested. "I came to contribute to Pakistan and its economy. I don't care about propaganda," said Umar. "My captain wanted to see me in a different role but I didn't think it was appropriate," he further said.
When asked about timing of his resignation as annual budget exercise is at its peak and Pakistan is going to the IMF programme, Asad Umar said that it is better to step down immediately after he was said to do so. "You know me. I am not interested in power politics," he added.
"This does not mean that I would not be available to support Imran Khan and Naya Pakistan," said Umar. He thanked the PTI and most importantly its young supporters. "I joined the PTI on April 18, 2012 and today I'm not leaving the PTI but I'm leaving the ministry," he said. He also thanked the people of NA-48 and NA-54 for electing him in the last two general elections.
"This seven-year journey has been amazing. There have been good and tough times and I tried to improve the situation as much as I could," said Umar.
Whoever comes in now, will need to know the country's economic position, he said. "When we came in, Pakistan's economy was going through its worst time in history," he said, adding that there were good and bad things but the bad were very bad.
"We made some tough decisions to get ourselves out of that and we saw some improvement," said Umar. "It's not that we're at such a great position now," he said. Both local and foreign journalists have said that being a finance minister is the toughest job after the job of prime minister, said Umar.
"The new minister will go through a lot and I hope he will get the support they need," he said. Umar said the economy is moving towards improvement but tough decisions and patience are needed.
"If we aren't ready to do that and instead want to act in haste, we will fall into that hole again," he warned. "I have one request to the new minister, make tough decisions and take stand on them," he advised.
"Don't expect that everything will be got fixed in three months," he said. He also said that the decision to leave would not affect the IMF programme and instead this decision should have been made earlier. It should have been made a month ago, Umar told the media persons.
The next budget needs to reflect the IMF programme and the new finance minister will take responsibility for its implementation so he should be a part of the IMF talks, he said. It will be a difficult budget, he said.
"Being the finance minister, you have a responsibility to the people," he said. "If I had to choose between two or three months of uncertainty or harming the interests of the people, I would choose the first," he said. "I was not ready to hurt the people by accepting the IMF package in a haste," said Umar.
He contended that the IMF programme being finalised has far better terms than the one initially offered. "I still believe Naya Pakistan will be made and I still support it," said Umar, adding that his support was not contingent on a ministry.
The economy is going through some tough times and the opposition is using that as an excuse to stir up troubles, he said. A fresh team may be able to bring in change but it needs time, he said. Umar also denied that his resignation is in protest. "I joined because of Pakistan," he repeated. He also denied that it had anything to do with amnesty scheme.
The basic policy design will stay the same, he told journalists, adding that with a new minister, a few small things could change but the main policy will be the same. "If the fundamentals aren't fixed, we won't be able to progress," he explained, adding that Pakistan has had the same three deficits for the past 40 years. Replying to a question who would be better finance minister, either a politician or a technocrat, Umar said that both have pros and cons. The technocrats have vast experience while politicians have grassroots level relations with the general public.
Responding to a query if issue of amnesty scheme led to his removal as finance minister, he said that the amnesty scheme has nothing to do with it. Asked about the continuation of the economic polices, he said that basic policy decisions would not be changed. However, the new finance minister would have the choice to work with the new team of economic managers. Until the three basic deficits are not corrected, the condition of the economy would not be improved.
Umar said, "If we compare first eight months of PPP and PML-N with the PTI, the economic crises were the worst during the first eight months of PPP and PML-N and we are going forward towards a better position."
Agencies add: Pakistan's finance minister Asad Umar has stepped down, he announced Thursday, with no replacement yet named as Islamabad seeks a crucial bailout deal with the International Monetary Fund. Umar, one of cricketer-turned-premier Imran Khan's most powerful ministers, had been entrusted with the task of negotiating the long-delayed bailout as Pakistan's cash-strapped economy faces a balance-of-payments crisis.
His abrupt resignation comes as Khan's government, which came to power last year, faces growing pressure with the rupee losing 30 percent of its value since the start of 2018, stirring sharp inflation.
"As part of a cabinet reshuffle, PM desired that I take the energy minister portfolio instead of finance," Asad Umar tweeted.
"However, I have obtained his consent to not take any cabinet position. I strongly believe @ImranKhanPTI is the best hope for Pakistan and inshallah (God willing) will make a naya (new) pakistan," he wrote.
There was no immediate statement from Khan's office or confirmation of who would replace Umar, and it was not clear how Umar's absence would impact any IMF deal.
Economist Muzammil Aslam said Umar had taken "tough decisions" to fix the economy.
"In my view, he has become a political victim and a scapegoat to neutralise the pressure," said Aslam, who heads Emerging Economics Research, a Karachi-based company.
Pakistan has gone to the IMF repeatedly since the late 1980s, and last received an IMF bailout in 2013 to the tune of $6.6 billion. Umar has said often that a deal is coming soon, and that it will be the last one. Earlier this week Hammad Azhar, a state minister for revenue, tweeted that Umar had reached an "agreement in principle" on an IMF deal during a recent trip to Washington, with the agreement to be finalised later this month.
But experts have warned that any tough measures imposed by the IMF could impact Khan's grand plans for an Islamic welfare state in Pakistan. An IMF forecast suggests the Pakistani economy is likely to grow at around 2.9 percent for the fiscal year ending June 2019, compared to 5.8 percent growth in the last fiscal year.
The government is already suffering a backlash. The rupee has been repeatedly devalued, sending inflation to 9.4 percent, as discontent rises along with prices of consumer goods. The United Arab Emirates, Pakistan's largest trading partner in the Middle East and a major investment source, recently offered $3 billion to support Pakistan's battered economy.
Islamabad also secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan's visit to the kingdom in October. It has also received billions of dollars in Chinese loans to finance ambitious infrastructure projects. At the press conference, Umar said he had first been informed that Khan wanted him to take over the petroleum ministry the previous night.
He dismissed rumours which rapidly began circulating about his removal in a country which has long been caught in a tussle between civilian and military power. "I am not aware of any conspiracies," he said, adding that he will remain in Khan's Pakistan Tehreek-e-Insaf party. Speculation of the departure was rife for months, with some business groups and investors unhappy at Umar's strategy of seeking short-term loans from allies such as China and Saudi Arabia. instead of finalising an IMF rescue package after Khan assumed power in August.
The central bank last month cut growth forecasts and raised interest rates with inflation at a five-year high. The rupee currency has weakened about 35 percent since December 2017.
Umar said he was asked to quit on Wednesday night and turned down the energy portfolio offered by Khan. Umar said Pakistan would go into an IMF programme but warned his successor of a tough job ahead with many difficult decisions, and urged the public to be patient.
The central bank forecasts growth at 3.5 to 4 percent in the 12 months to the end of June, well short of a government target of 6.2 percent. The IMF paints a gloomier picture, predicting growth of 2.9 percent in 2019 and 2.8 percent next year.
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