The resignation by Asad Minister as a finance minister may be a surprise for many people in Pakistan but it was on the cards. The concerned quarters in Pakistan were not at all happy over his eight month’s performance. He has been one of the most trusted lieutenants of Imran Khan; often referred as his opening batsman was probably the only person in Pakistan Tehrik-e-Insaf (PTI) led government who was sure of his portfolio even before the PTI formed its government in the center. There is no denying the fact that the outgoing Pakistan’s finance minister took over office in the midst of a difficult economic situation. Although, it won’t be fair to expect miracles and a turnaround in the economy in just eight months yet Asad failed to set a clear cut course of action to remedy the ailing economy of Pakistan. Let us examine as to how the outgoing finance minister performed during his short stint that forced Imran Khan for a change of heart.
The prevailing economic uncertainty has been the major and foremost reason that shattered the confidence of business community in Pakistan. During the initial six months, an absolute indecisiveness by the ex-finance minister about IMF bailout package also raised doubts in the minds of financial stake holders in the country. Thus the uncertainty led to economic inactivity and a total economic meltdown.
The decision for rupee devaluation has been another setback to Pakistan’s deteriorating economy. About 30-35 percent, decrease in rupee value put Pakistani currency under immense pressure against US dollar. The devaluation never works in favour of developing countries like Pakistan that is already under heavy foreign debt. The action not only raised the debt level of Pakistan manifolds but it also raised doubts in the minds of investors. It is pertinent to highlight that the investors whether local or foreign always shy away from investing in a week currency. Furthermore, the common person particularly the salaried class suffered the most in the wake of sudden currency devaluation.
It must be kept in view that the revival of economy has been a major slogan of PTI during the election campaign 2018. The people of Pakistan had thus pinned lots of hopes from Imran and his economic wizard Asad Umar. Unfortunately, the dismal performance by PTI’s financial team led by Asad Umar put Imran Khan on a back foot. The quarterly report about first quarter of 2019 issued by State Bank of Pakistan is an eye opener and speaks volumes about the poor economic state of affairs.
The recent price hike in daily commodities coupled with an inflation of close to 10 percent has really made life difficult for the common people in Pakistan. Similarly the discount rate at 10.75 % announced by State Bank of Pakistan has really put the whole business activity in jeopardy. The growth rate has come down to 3% and the stock market has dropped from 52000 points to 38000 points. The performance in other sectors has been equally disappointing. For instance, large scale manufacturing is showing negative growth. Similarly, the agricultural production has gone down drastically. The major price hikes in oil, gas and electricity made by PTI led government has made the cost of living unbearable for the common man in Pakistan.
How to justify such economic performance? A number of reasons can be given. But the fact of the matter is that Asad Umar failed to deliver the nation. It’s about time that Imran Khan must act and put someone in charge of Pakistan’s economy who really understands the ailments of Pakistan’s economic situation.
