Aurangzeb, CEO of Pakistan's largest bank, tapped as finance minister

Aurangzeb, CEO of Pakistan's largest bank, tapped as finance minister

By Asif Shahzad and Ariba Shahid

Muhammad Aurangzeb, the CEO of Pakistan's largest bank, was picked as finance minister in the country's new cabinet that was sworn in on Monday, as Pakistan looks to strike a new IMF deal and stabilise the economy.

A national election last month resulted in no party holding a majority, after which a coalition alliance elected Shehbaz Sharif as prime minister for a second time to tackle the country's economic and political crises.

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Sharif has included Muhammad Aurangzeb, chief executive officer of HBL bank, in the cabinet and he will be given the portfolio of finance minister.

"Mr. Muhammad Aurangzeb officially took over the responsibility as Finance Minister of Pakistan after taking oath at the Presidency, today," the ministry of finance said in a post on X on Monday night.

HBL said he was stepping down from the bank.

Aurangzeb was picked over several veterans previously involved in handling the $350 billion economy, including four-time finance minister Ishaq Dar, as the country looks to plot a path out of its economic difficulties.

Dar was also named a federal minister and has been appointed as foreign minister, Reuters saw in a government document outlining the allocation of portfolios.

The document listed 18 ministers and their portfolios.

“Economic diplomacy is the need of the hour for sure,” Dar told Reuters

HBL on Monday informed the Pakistan Stock Exchange of Aurangzeb's resignation from the bank, in a letter to the bourse.

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In a statement from HBL, Aurangzeb said, "I am excited about the opportunity to serve our country in this new capacity and contribute to the economic growth and development of Pakistan.”

The bank called his stepping down from his position a "remarkable act of national service".

Pakistan's current International Monetary Fund programme expires next month, and Sharif has said his government would look to negotiate a new, longer term bailout to keep the country's economy stable amidst high inflation and external financing requirements.

The new cabinet was sworn in at a ceremony on Monday where the oaths were administered by newly elected President Asif Ali Zardari, over a month since the Feb. 8 national election.

A letter, seen by Reuters, sent by Sharif to the president for the appointment of the cabinet earlier on Monday included one woman on the list of proposed ministers, Shaza Fatima Khawaja, who was proposed as a state - or junior - minister.

Aurangzeb does not have a seat in parliament but local laws say he can hold a post of minister for up to six months without one.

The sources told Reuters that Sharif's Pakistan Muslim League-Nawaz (PML-N) party planned to give Aurangzeb a Senate seat soon.