Nomination of Pakistan’s senior adviser to IMF delayed

ISLAMABAD: The International Monetary Fund (IMF) has delayed the nomination of Zafar Hassan as Pakistan’s senior adviser to the Fund’s executive board, largely because of the ongoing political transition in Pakistan. Another factor was decision of the erstwhile Pakistan Muslim League-Nawaz administration to nominate one official for the post, instead of a panel of three potential candidates for selection by the Washington-based lender, The News has learnt.

The delay has nothing to do with the performance of Shahid Mehmood, a retired civil servant of the Pakistan Administrative Service, who worked as senior advisor on the 2013-17 IMF bailout programme for Pakistan, officials at the Fund said.

“Mr Mahmood left my office in early 2017 to assume a senior position in the Ministry of Finance," the Executive Director of the IMF, Jaffar Mojarrad, told The News from Washington. "If he had been nominated again, he would have been welcomed back,” he said.

The filling of the post is now of immense importance because the newly elected Pakistan Tehreek-i-Insaf government is exploring options to overcome balance of payment of difficulties, including seeking an IMF loan to avoid a default on the repayment of foreign obligations.

The post of senior advisor to the IMF fell empty one-and-a-half years ago. It was left vacant by the last government on the pretext that Islamabad had exited the Fund program and there was no hurry to fill post. Some influential bureaucrats tried to secure the prestigious assignment, but were unsuccessful. In last few days of the PML-N administration's tenure, the then Prime Minister, Shahid Khaqan Abbasi, approved a summary nominating Zafar Hassan, additional secretary to the Ministry of Finance, for the IMF position on the recommendation of finance minister Miftah Ismail.

The ministry subsequently communicated the nomination of Zafar Hassan to the IMF headquarters, but did not pursue the matter, senior officials have previously told The News. Mojarrad said it would be prudent, given the sensitivity and nature of the job of senior advisor, that the incoming government and its economic management team be consulted about the appointment, especially if Pakistan decides to approach the IMF for a bailout. “As is the standing practice in this office, we request the authorities to submit a list of three qualified candidates to us to interview so as to select the candidate who best fits the job requirements, which is rather technical in nature," the IMF Executive Director said.

This request had repeatedly been transmitted to the Pakistani authorities since the departure of Mahmood. However, the IMF executive board would ensure Pakistan's interests were taken care of until a senior advisor is appointed.

"Let me assure you that until the new senior advisor is appointed, myself and the highly qualified technical staff in my office are looking after the best interests of Pakistan,” Mojarrad said.