The new economic czar

The PPP government has tacitly acknowledged the vastness of the crisis afflicting the country, as well as the inadequacy of the tools at its disposal, by its appointment of banker Shaukat Tarin as its economics czar, as a PM's Advisor with the rank and status of a federal minister. Tarin has been put in charge of both the Economic Committee of the Cabinet and the Economic Committee of the National Economic Council, at a time when the main problem facing the economy is the drawdown of the foreign exchange reserves built up over the last bout of military rule.

Tarin's appointment represents a leap of faith for the PPP, which clearly still believes in the technocratic model for this portfolio. Tarin may be a jiala, but the more important fact about him is that he has been a lifelong Citibanker, and has headed Pakistani banks both in the government sector and in the private sector. That was the reason that he was tapped to head the newly-formed Council of Economic Advisers, and the reason he has been chosen for his present post.

In Pakistan, it is still assumed that finance ministers should be hands-on experts. This is incorrect under the parliamentary system of government at least, though a case may be made out for such expertise under a presidential system. Under the parliamentary system, any minister (not just the finance minister) is not supposed to be an expert, but the ministry is supposed to be staffed by experts specialising in the field, and finance experts, though relatively rare even in the bureaucracy, can still be found.