ISLAMABAD Before negotiations with the IMF for a new rescue package, the CEO of Habib Bank Ltd. (HBL), the biggest bank in Pakistan, is probably going to be considered for a senior role in the financial team of recently elected Prime Minister Shehbaz Sharif, two sources told Reuters.
In order to support its $350 billion economy, which is in dire need of external finance due to high inflation, limited reserves, and high requirements, Pakistan urgently needs a new IMF deal.
Currently serving as CEO of HBL, Muhammad Aurangzeb is expected to be named Special Assistant to the Prime Minister for Finance, according to two people, one of whom is directly aware of the talks and the other who works in the finance ministry.
There has not yet been a definitive choice made. After taking office on Monday, Sharif will have to appoint a cabinet, with the finance ministry being the most crucial to choose because Pakistan’s existing three-year, $3 billion IMF program is set to expire next month.
Requests for comment were not immediately answered by representatives of HBL or Sharif’s party.
Dawn was informed by an HBL representative that they are unable to comment at this time.
Citing people close to the prime minister, local station Geo News also announced that Aurganzeb will be appointed finance minister. However, the banker is not legally entitled to a seat in parliament, which is a need for becoming a full minister.
It was not immediately apparent who would carry the extra portfolio of finance minister alongside Sharif or Aurangzeb, even in his capacity as special assistant, as the de facto financial czar.
Aurangzeb has vast expertise dealing with international markets and has also held the position of CEO of JP Morgan’s Global Corporate Bank, which is headquartered in Asia.
In addition to the IMF agreement, Pakistan must draw in foreign capital to support its low reserves, which are essential for meeting significant external financing requirements and reviving its faltering economy.
Following his oath of office, Sharif met with financial ministers and advisors almost away, instructing them to start negotiations with the IMF for an Extended Fund Facility, a long-term loan that experts believe is essential to keeping the nation out of default.
A video of the meeting, provided to journalists by the government’s communications staff, revealed that Aurangzeb was present.
