September 25, 2022 (MLN): Finance Minister Miftah Ismail submitted his resignation to Prime Minister Shahbaz Sharif as the ruling coalition deals with tough economic challenges including record-high inflation, economic recession and the devastation caused by floods, according to sources.
Miftah's resignation comes immediately following meetings among the senior PML-N leadership in London where PM Shahbaz Sharif met his exiled brother Nawaz Sharif.
Miftah Isamail took the helm of economy at a crucial stage and played a key role in steering the country out of crisis. Within weeks of taking charge as finance minister, Miftah took stern actions including reversion the fuel subsidies and raising electricity tariffs.
The unpopular moves paved way for revival of the International Monetary Fund bailout.
His economic policies focused to containing the aggregate demand through tight fiscal policies and narrowing the twin deficits.
However, he was repeatedly criticized for statements on imminent default during the first two months of his tenor, failure to keep exchange rate volatility in check, and reduce prices (inflation). The outgoing minister also allowed higher fuel imports bill (despite record-high petroleum product prices and availability of stocks) in June to reduce trade and current account deficits in July-August period.
In the last five years, the country has had five finance ministers, four of whom including Asad Umar, Dr. Hafeez Shaikh, Shaukat Tarin, and Hammad Azhar were appointed and replaced by the PTI.
Whoever replaces Miftah will become the country's sixth finance minister since 2018 and will be second finance minister since coalition parties took charge of the federal government.
