Although President Asif Ali Zardari on Tuesday accepted the resignation of finance minister Abdul Hafeez Shaikh who tendered his resignation two days ago, his resignation has triggered media hype over the reasons behind the resignation of the government’s financial wizards.
Shaikh tendered resignation after developing serious differences with the presidency, allegedly over the massive allocation of funds to be doled out as subsidy for power tariff for tube-wells, allegedly under the influence of PPP MNAs, to help woo their voters in rural areas in the upcoming polls.
Shaikh was appointed the finance adviser to former prime minister Yousaf Raza Gilani in year 2010 and was later appointed the finance minister.
He holds a PhD in economics, taught at Harvard University and worked at the World Bank for several years, advising 21 countries, including a stint as World Bank country head in Saudi Arabia.
Recently, Shaikh faced severe criticism for the sudden downslide in prices of rupee against dollar which has now crossed Rs 100.
Despite his dismal performance over the past two years, Shaikh was being picked as a potential candidate of the ruling coalition for appointment as caretaker prime minister. However, the major opposition party, the PML-N has rubbished any future prospect for Shaikh.
“He is a failed economic manager. He roughed up the country’s economy and he has also lost the confidence of the government. The caretaker PM should have credibility as a neutral person but Shaikh is PPP’s man,” said Mushahidullah Khan, the secretary information of the PML-N.
He said even Sartaj Aziz, the former foreign minister of Nawaz Sharif in 1997-98, was a better finance wizard than Shaikh.
Shaikh is said to have capacity of winning support from the country’s establishment as well as a nod by the US, EU and some of the international financial institutions – including the International Monetary Fund (IMF) and the World Bank.
“Shaikh brings with him a long administrative experience besides having planned and executed fiscal policies. Since he has also rich experience of working with the IFI’s, his nomination may help the country deal with the daunting financial challenges,” said a PPP leader.
The minister said since the caretakers would also strategise to deal with financial issues as the government would not be able to present the fiscal budget this June and the upcoming government might prepare the new budget, Hafeez would be able to deal with the issues concerning the Ministry of Finance.
Shaikh’s name came to spotlight in the foreign media during his tour of the US, where despite strained relations between the US and Pakistani Army, Shaikh was able to win a better financial deal for Pakistan.
However, the lack of political support may land Shaikh in isolation.
He is being replaced by the state minister for finance, Saleem Mandviwalla.