PAKISTAN's finance minister Abdul Hafeez Shaikh replaced with Hammad Azhar on monday amid government shake-up due to uncontrolled "rising inflation" and the futile economic policies.
This is the second time when the finance minister of Pakistan has been replaced in PM Imran Khan's Tenure that witnessed GDP falling from 5.6% to -0.4% coincides with the restart of a USD 6 billion IMF bailout package that had been suspended for almost one year over questions about financial and revenue reforms.
Pakistan also plans to float Eurobonds worth almost USD 2 billion to get flowing capital from the International market about two months before presenting the budget amid historical remittances and good debt inflows helping to shore up foreign reserves to assist its currency's recovery against the dollar.
"This wasn't expected as investors thought that after the IMF deal Mr. Shaikh will present the next budget also,"- Mohammed Sohail of Topline Securities.
"Market will be affected negatively in the short run," he said.
The Central bank on 19 March kept its policy rates at 7% for the 10th consecutive month to enhance economic recovery while keeping inflation expectations well-anchored and maintaining financial stability. It also revised the growth rate to 2% from 3% for the current financial year.
While the decline of the economy was greatly affected by covid-19, and the futile financial policies added to it. While replacing finance ministers, again and again, weakens the management and its nature.
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