Pakistan’s finance minister Tarin to quit پاکستان کے فنانس منسٹر عہدہ چھوڑ رہے ہیں۔۔۔

The Financial Times - Shaukat Tarin, Pakistan’s finance minister, is to resign to concentrate on personal banking interests, ending days of speculation over the political fate of the minister. Mr Tarin told the Financial Times that he would step down to “give full time attention to my bank,” referring to Silkbank, a commercial bank in which he holds a 21 per cent stake.

“I have tendered my resignation and asked the prime minister to nominate a successor,” said Mr Tarin.

In an interview, the minister declined to comment on speculation that his departure was sparked by policy differences with the government. Prime minister Yusuf Raza Gilani had refused to give Mr Tarin more authority to crack down on tax evasion, which has been a persistent problem for Pakistan.

But a source close to Mr Tarin said his departure “has to do with the government once again dragging its feet on a [tax] clamp down”.

“They just don’t understand. You can’t allow tax dodgers to go free. This is a massive setback for Pakistan’s economy,“ said the person.

Pakistan’s tax to GDP ratio during the past financial year (July-June) was below 9 per cent – the lowest among south Asian economies, notably India, Sri Lanka and Bangladesh.

Mr Tarin, a former international banker, oversaw negotiations with the International Monetary Fund in 2008 which led Pakistan to successfully conclude a $11.5bn agreement, staving off a looming balance of payments crisis.

The two-year IMF program – the largest that Pakistan has ever negotiated with the institution – is due to conclude by end of 2010.

“I am sufficiently confident [that] the Pakistani economy is back on track. We are out of a difficult phase,” said Mr Tarin.

Three candidates have emerged to succeed Mr Tarin, including Ishrat Hussain, a former World Bank official who served six years as Pakistan’s central bank governor. The others are Hafeez Pasha, a former commerce minister who worked for the United Nations Development Program, and Nasim Beg, a Karachi-based investment banker.

Mr Tarin said he was returning to SilkBank to help the bank raise capital as it prepares for a rights issue.

“In my position as finance minister, I will not be able to perform any role for the bank as any role of this kind will be a conflict of interests,” said Mr Tarin, a former international banker.