ISLAMABAD: Despite indictment in the National Accountability Bureau (NAB) case and subsequent demand from opposition parties to resign from his post of finance minister, Ishaq Dar seems to be in no mood to step down and pave the way for a new minister to look into the economic situation.
According to experts, the country is fast heading towards a ‘fiscal shutdown’ following an uncertain situation after indictment of finance minister, who is reluctant to leave the seat.
An accountability court had indicted the finance minister on Wednesday in connection with a reference filed by NAB against him for possessing assets beyond known sources of income.
Insiders claim that the minister has instructed officials at the ministry that no file should move without his consent, resulting in freezing of financial activities, as the minister remains much involved in his personal cases. He has reportedly arranged fresh documents to prove sources of income for the assets in questions.
“The incumbent minister may hold the ministry as long as he is in the country or until Nawaz Sharif asks him to step down,” they opined, adding that the former prime minister may not ask Dar to leave the post due to his close family ties.
“The movement of files at Finance Ministry and other institutions under the ministry has either halted or slowed down and no major decision is being taken by top bureaucrats. Besides, foreign investors interested in long term contract are also in ‘wait and see’ position, observing the development on political fronts, following cases at NAB involving entire ruling family, including the finance minister,” sources claimed.
Though leaders of the ruling party too admit that the finance minister should leave office after indictment, the minister seems interested to hold the office as long as he can to apparently save his skin. “He thinks he can do what he needs to deal with the cases while enjoying the important post of the ministry.”
Apart from the economic slowdown, a major impact of the Dar saga is halt in process of domestic reforms committed by the country to IMF. The country had committed to introducing reforms plan which included independence of the State Bank of Pakistan, reforms in the Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), and energy corporations (Discos and Gencos).
The Asian Development Bank (ADB) in its Outlook 2017 has shown its concerns about the economic situation in Pakistan, saying the government needs to address fiscal and external sector vulnerabilities that have reappeared with the wider current account deficit, falling foreign exchange reserves, rising debt obligations, and consequently greater external financing needs.
According to the bank, “Political uncertainty heightened following the Supreme Court decision in August to disqualify for office the prime minister elected in 2013. Calm has returned, and his party will continue to lead the government until new Parliamentary elections due by the third quarter of 2018. Still, possible loss of momentum for making policy decisions may hamper growth prospects.”
Earlier, NAB Lahore had ordered the departments concerned to freeze Dar’s accounts as well as his moveable and immoveable assets in Pakistan. It was also learnt that a team of the office raided Dar’s residence in Islamabad’s Ministers Enclave, reports of which were denied by NAB.
The Supreme Court (SC), in its Panama Papers case verdict, had ordered NAB to investigate the accused named in the report filed by the Joint Investigation Team (JIT). The JIT had pointed out an exorbitant increase in Dar’s assets from 2008 to 2009.
Subsequently, soon after Shahid Khaqan Abbasi became prime minister, Dar saw his influence over the government erode as he lost chairmanship of one committee after the other. Dar had also come face to face with the Sharifs, opposing them in their intent to appoint Shaukat Tareen as adviser on financial affairs.
It is pertinent to mention here that Dar had requested exemption from attendance in the hearings which were denied; the hearings were adjourned till October 4.
