ISLAMABAD: Finance Minister Ishaq Dar has succeeded in reversing the financial bleeding of Pakistan. It is evident from 20 rupees decline in the value of dollar in the interbank, at 219 rupees on Oct 7, down from 239 rupees before the arrival of Ishaq Dar in Pakistan.
Meanwhile, in the open market, dollar-rupee exchange rate has plunged to 221 rupees, from 250 rupees when the name of Ishaq Dar was announced as the next finance minister of Pakistan. Thus, in the open market value of rupee has increased by at least 28 rupees.
Finance Minister Ishaq Dar told media on Friday that the quantum of Pakistan’s debt has declined by 2600 rupees just because of the appreciation of Pakistani currency.
Furthermore, the Pakistan Stock Exchange has also demonstrated a significant gain, showing confidence in the economic policies of finance minister Ishaq Dar.
By Oct 7 (Friday) morning, the KSE-100 benchmark index has edged up to 42,270 points _ gaining more than 1300 points from the day Ishaq Dar became finance minister.
As the United Nations has supported rescheduling of Pakistan’s foreign loans payable in 2022-23, Pakistan will get relief of more or less $11 billion _ and this will also stop erosion in the foreign exchange reserves, discourage dollarisation, and enable the government to improve national economy.
In Pakistan, Dar will be the first absconder/proclaimed offender who has the honour of becoming the Finance Minister amid a big fanfare on media.
Dar returned from London on Monday night (Sept 26) along with Prime Minister Shehbaz Sharif through a special plane in top-level protocol. He remained in self-exile for five years mostly in London.
Ishaq Dar is still an absconder/proclaimed offender and an accountability court in Islamabad has cancelled his arrest warrants on Friday (Oct 7).
Thus, Ishaq Dar moved on as per the original Pindi-London plan and took oath as Senator on Tuesday (Sept 27) afternoon.
On Sept 28, Ishaq Dar took oath as Finance Minister, replacing Miftah Ismail, who resigned on Tuesday to vacate the coveted position for Dar _ once an absconder/proclaimed offender but now a darling of the powers that be who had to swallow this bitter pill under the Doctrine of Necessity. Nazriya-e-Pakistan was buried many decades ago and the Doctrine of Necessity was introduced which has been burying Pakistan gradually but steadily in poverty, lawlessness, unprecedented loans, massive price hike, exploitation of consumers through electricity bills, gas, petroleum products, multiple taxes, etc.
In short, Ishaq Dar was declared absconder/proclaimed offender under the Doctrine of Necessity and the same doctrine had been applied to bring him back with full honour and dignity as Finance Minister.
Let us see how the Doctrine of Necessity works for Pakistan this time, people of this country and mastermind of this doctrine.
Dar versus Dollar
Since the return of Ishaq Dar, the dollar-rupee exchange rate has dropped to 221 rupees, from 250 rupees in the open market and 219 rupees in the inter-bank, from 239 rupees. It shows with the arrival of Ishaq Dar as Finance Minister, a bad time has started for those who were playing with the dollar-rupee exchange rate for their vested interests.
Now a question arises in our minds, why did this not happen when Miftah Ismail was the Finance Minister. Answer is simple, Ishaq Dar is very powerful and highly-connected in the country and abroad in comparison with Miftah Ismail. This can be imagined well from the case of Dar who had been imported from London in a special plane carrying Prime Minister Shehbaz Sharif and other VVIPs. The plane landed directly at Noor Khan Airbase in Rawalpindi because it was the special plane and for the special VVIPs, hence, the landing place was the safest and special one as well.
Also, Ishaq Dar enjoys better support than Miftah and Dar is capable of taking decisions which Miftah is unable to think of.
For example, soon after taking oath as Senator, Dar warned the filthy circles involved in dollarization and artificial hike in the value of dollar. When the coalition govt was formed, the dollar-rupee exchange rate was fluctuating around 175 rupees. On the midnight of no-confidence, the dollar-rupee parity climax expanded to 196 rupees, but when Shehbaz Sharif took oath as Prime Minister, dollar fell to 175 rupees. However, this blow to dollar was a short-lived development and gradually the exchange rate mounted to 248 rupees in the open market twice _ before the release of IMF loan and after the disbursement of IMF tranche.
The dollarization phobia seems to be over _ may be for the time being and more good things are going to happen after oath taking of Ishaq Dar as Federal Minister for Finance.
