Aurangzeb’s appointment as finance minister a ‘positive step’: Bloomberg

Report says Shehbaz return as PM has increased chances of securing a new IMF package

ISLAMABAD:

The appointment of Muhammad Aurangzeb as Pakistan’s finance minister is a positive step to steer the country’s economy in the right direction, Bloomberg said in a report.

“Pakistan’s Prime Minister Shehbaz Sharif picked a former banker from JPMorgan Chase & Co. as finance minister, marking a shift to using technocrats to steer the cash-strapped economy and negotiate for new loans from the International Monetary Fund (IMF)”, the US-based Bloomberg reported.

It added that PM Shehbaz Sharif had the experience of closing a deal with the multilateral lender as prime minister, adding that he personally negotiated with IMF Managing Director Kristalina Georgieva.

Bloomberg Economics analyst Ankur Shukla said in a report that Shehbaz Sharif had a track record of carrying out reforms and his return as prime minister for a second term increased the chances of securing a new IMF package.

Read more: Aurangzeb assumes role as finance minister amid economic challenges

His party’s election manifesto — which includes cutting the fiscal deficit and fixing the current account balance — are aligned with the IMF targets or, in some cases, even more ambitious, Shukla wrote in the report.

It added that Pakistan had rewarded investors who still ploughed in funds as the nation’s dollar bonds handed them a gain of almost 25% this year, the biggest in Asia.

Aurangzeb's appointment comes amid a debilitating economic crisis and the need for Pakistan to secure a crucial IMF programme, which will be of utmost priority for the new finance chief.

He is a seasoned banker with more than 35 years of diverse experience at leading global banks in Pakistan and overseas. Before joining HBL, he was CEO Global Corporate Bank, Asia Pacific at JP Morgan.

Aurangzeb started his career with Citibank, first in Pakistan and later in New York. He then joined ABN AMRO Bank in a senior leadership role, rising to the position of the country manager in Pakistan. He has since held senior level regional and global positions in ABN AMRO Amsterdam, RBS Singapore and JP Morgan.

He is a graduate of the Wharton School, University of Pennsylvania from where he received a Bachelor’s degree in Science and Economics as well as an MBA.