Ishaq Dar assumes role as foreign minister

ISLAMABAD: Ishaq Dar, the former finance minister of Pakistan, has assumed the position of the country’s foreign minister, amidst mounting economic and security pressures that are poised to shape the nation’s foreign relations agenda.

At 73 years old, Dar, a seasoned politician and chartered accountant, hails from Prime Minister Shehbaz Sharif’s Pakistan Muslim League-Nawaz (PML-N) party, which leads a minority government within a ruling coalition. He holds a close familial and advisory relationship with PML-N chief Nawaz Sharif.

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Having previously served as finance minister four times, Dar’s appointment signals a heightened focus on economic considerations in Pakistan’s diplomacy. The nation seeks to negotiate another International Monetary Fund (IMF) deal and bolster external financing from foreign capitals.

“Economic diplomacy is the need of the hour for sure,” remarked Dar to Reuters, acknowledging the urgency of economic priorities.

However, criticism has emerged from Dar’s own political allies regarding his management of the economy during his tenure as finance minister in the previous coalition government, which assumed office in April 2022 following the removal of former Prime Minister Imran Khan through a parliamentary vote of confidence.

During Dar’s 16-month tenure, inflation soared to 38 per cent and interest rates peaked at 22 per cent, largely due to IMF policy stipulations. Dar defended his decisions, citing the necessity of stringent measures to prevent a sovereign default by reinstating the IMF programme, which Khan had terminated shortly before leaving office, an allegation denied by the former prime minister.

Nevertheless, Pakistan faced challenges in unlocking the remaining tranches of its $6.5 billion bailout programme under Dar’s leadership, necessitating intervention from Shehbaz Sharif to secure a last-minute deal.

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Throughout negotiations, Dar publicly criticised the IMF and advocated for market intervention to support the Pakistani rupee, a stance cautioned against by the IMF.

In his new capacity, Dar must navigate intricate relationships with China, Gulf countries, and the United States, critical sources of financing for Pakistan, alongside managing diplomatic ties with neighbours such as India and the Taliban-led Afghanistan.