Who is real finance minister, Miftah Ismail or Ishaq Dar?

A new debate has started in the country of whether the present finance minister Miftah Ismail or former minister Ishaq Dar is dealing with the affairs of the national economy.

It is being speculated that Ishaq Dar is working as the de facto finance minister of Pakistan after many contradictions were witnessed in the statements of the present finance minister Miftah Ismail and Ishaq Dar who is residing in London.

The previous statements of Finance Minister Miftah Ismail included his concerns over the fuel subsidies given by the Pakistan Tehreek-e-Insaf (PTI) government that could have affected the loan program of the International Monetary Fund (IMF). He also showed serious concerns about a heavy financial burden being borne by the national treasury up to Rs700 billion due to the fuel subsidies.

However, the Pakistan Muslim League Nawaz (PML-N) government did not end the fuel subsidies as yet. Ismail also criticised the amnesty scheme announced by the former premier Imran Khan for the real estate sector.

On the other hand, Ishaq Dar, during an interview with Geo News programme Naya Pakistan on May 7, gave several policy statements while being in London regarding the national economy, loans, fresh elections, currency valuation against the US dollar, renegotiations with IMF and others.

“سعودی عرب اور یو اے ای کے ساتھ دیرینہ تعلقات ہیں، میں پرامید ہوں کہ یہ ممالک تعاون کریں گے اور پاکستان کے پاس رکھے 3 ارب ڈالر ابھی نہیں نکالیں گے”

سابق وزیر خزانہ، اسحاق ڈار@NayaPakistanGeo pic.twitter.com/loE32Rp5e6

— Shahzad Iqbal (@ShahzadIqbalGEO) May 7, 2022

Khawaja Asif hints at reversing SBP autonomy before Miftah Ismail-IMF talks

In a series of statements, the former finance minister Ishaq Dar said that the US dollar price will be reduced to Rs160. He also favoured holding renegotiations with IMF for the loan program as the PTI government’s agreement with the global financial institution was badly negotiated.

شاہد خاقان عباسی سمیت دیگر رہنما اسمبلیوں کی مدت پوری کرنے کا کہہ چکے.

مگر سابق وزیر خزانہ اسحاق ڈار نے اکتوبر تک نئے الیکشن کی خواہش ظاہر کردی..

“ہم ڈیڑھ سال پورے کرنے کیلیے نہیں آئے.جو مدت مکمل کرنے کی بات کر رہے ہیں، وہ ان کی ذاتی رائے ہے، پارٹی پالیسی نہیں”@NayaPakistanGeo pic.twitter.com/2zZWmLAXGe

— Shahzad Iqbal (@ShahzadIqbalGEO) May 7, 2022

Dar also favoured going to hold fresh elections instead of completing the 1.5 years tenure.

ن لیگ اپوزیشن میں اسٹیٹ بینک ترمیمی قانون پر تنقید کرتی رہی اور کہہ چکی ہے کہ اقتدار میں آ کر قانون واپس لے گی.

تو اب ن لیگ نے اس معاملے پر یوٹرن کیوں لے لیا؟

اسحاق ڈار کا جواب@NayaPakistanGeo pic.twitter.com/f6aylhGzXb

— Shahzad Iqbal (@ShahzadIqbalGEO) May 7, 2022

Miftah for fuel subsidy burden

Finance Minister Miftah Ismail has kept sounding off against the financial burden on the national exchequer in the shape of fuel subsidy in every press conference, whereas, former energy minister Hammad Azhar presented a solution.

In a press conference yesterday, Miftah Ismail censured the previous Pakistan Tehreek-e-Insaf (PTI) government for disastrous policies regarding the fuel subsidy. He blamed the former PTI government to increase the financial burden on the national exchequer via hefty fuel subsidies.

The finance minister claimed that the government is facing a huge loss of Rs70 per litre on diesel nowadays due to the policies of the PTI government, whereas, the diesel price would be hiked up to Rs150 in accordance with the promises made by the previous government to the International Monetary Fund (IMF).

The real story behind Ismail’s outcry is a policy shift by the present Pakistan Muslim League Nawaz (PML-N) government instead of continuing the plan of the previous government.

In March 2022, the former PTI government gave a Rs38 billion subsidy on fuel, whereas, it planned to purchase oil from Russia at 30 per cent less price as compared to the global market. It may be noted here that India is already purchasing oil from Russia at a lower price as it bore the pressure of Western countries and refused to stop the oil purchases.

The neighbouring country’s government asked the West to initiate the purchases of oil from European states as it buy a huge amount of oil stock from Russia in only one day which is almost sufficient for India for the one month.

On the other hand, former prime minister Imran Khan’s decision for oil purchases from Russia was subjugated and a regime change plan was succeeded in the country by the then opposition. The present government did not pursue the former PTI government’s policy nor made any progress on the deal.

The PTI leader and former energy minister Hammad Azhar presented a solution to reduce the burden on the national treasury, saying that the PTI government had initiated talks with Russia for low-cost oil stocks. He said that Pakistan would not give any fuel subsidy if it purchases oil from Russia at 30% less price.

Azhar also asked the finance minister to elaborate on the PML-N government’s plan for stabilising the rupee against the US dollar. He added that the federal government should decide on increasing the fuel price if it is needed instead of creating confusion. Azhar reminded that the former PM vowed not to increase the fuel price till June.

The former energy minister criticised that the present government created an artificial power and diesel crisis in the country and its economic policies are directionless, whereas, inflation has risen above 13%.

He also clarified that the PTI government did not give any authority to the IMF to fix the prices of petroleum products. He suggested the PML-N government immediately go to the fresh elections if it fails to handle the issues.

Analysts said that the inflation rate is currently standing at 12 per cent, whereas, the US dollar is worth Rs188. Pakistan’s foreign reserves are $17 billion, whereas, the trade deficit crosses $35 billion mark.

They said that it is not important to target an individual like Ishaq Dar and Miftah Ismail as the finance minister other than expecting the revival of the national economy.