Ishaq Dar

Last updated

Dar was appointed minister of finance in September 2022 [132] and served until August 2023. His tenure coincided with a challenging economic period, marked by high inflation and the need for International Monetary Fund assistance. In January 2023, Dar sought US assistance in obtaining IMF funding in view of recent floods and adverse economic conditions. [133] [134]

Imran Khan's administration had previously initiated negotiations with the IMF for a bailout program, but these talks stalled before his departure in April 2022.

During Dar's tenure, Pakistan experienced high inflation peaking at 37.97% and significant interest rate hikes reaching 21%. [135] These developments can be attributed, according to some critics, to the policy requirements of the IMF program.

Dar's approach involved advocating for market intervention to stabilize the Pakistani rupee, a strategy that reportedly differed from the IMF's recommendations. Additionally, he publicly criticized the IMF during negotiations, potentially impacting the process. [136]

Pakistan faced a seven-month-long struggle to release the remaining tranches of its final $6.5 billion bailout program. Despite delays, Dar negotiated a deal with the IMF, with Prime Minister Shehbaz Sharif playing a pivotal role in finalizing the agreement. [136]

In 2023, he was nominee of position of Caretaker Prime Minister of Pakistan before being ruled out in favour of Anwaar-ul-Haq Kakar.

Second Shehbaz Sharif ministry

During the 2024 election campaign, Ishaq Dar's policies were heavily criticized. He was blamed for mismanaging the government response to the ongoing economic crisis. This led to the speculation that he may be nominated as Chairman of the Senate. However, the power-sharing formula following the coalition agreement between PPP and PMLN resulted in senate chairmanship being allotted to PPP and National Assembly speakership being given to PMLN. Hence, he was sworn-in as a federal minister. He was appointed as the 38th Foreign Minister of Pakistan the following day. This emphasizes Shehbaz administration's shifting focus towards a geoeconomic foreign policy. His senate term ended the day he took charge of the foreign ministry. In the 2024 Pakistani Senate election, he sought reelection. During the Senate elections on 2 April 2024, he secured victory for a technocrat seat representing Islamabad by receiving 222 votes. [137]

Dar expressed intentions to thoroughly assess the trade situation with India following concerns raised by the business community. [138] Bilateral trade between the two countries has been on hold since August 2019, due to tensions sparked by India's move to revoke Kashmir's special status.

Dar conveyed his concerns about terrorist hideouts in neighboring Afghanistan to the country's Interim Foreign Minister, Amir Khan Muttaqi, following the North Waziristan terror attack on the Pakistan Army, [139] resulting in the deaths of seven security force members. He expressed disappointment at the perceived lack of substantial action from Afghanistan in addressing terrorist groups operating from its territory.

On 28 April 2024, Dar was given the additional charge of Deputy Prime Minister of Pakistan. [140]

Dar described the killings in Gaza as a "genocide" of Palestinians and called for an "immediate and unconditional" ceasefire. [141]

In October Ishaq Dar replaced Musadik Malik as Chairman of Sugar Monitoring Committee. Business Recorder commented that Dar was to take "lenient" decisions compared to "harsh" attitude. [142] The Express Tribune wrote that Malik had been "vocal in his criticism of sugar millers for violating the export conditions imposed by the government." [143] Dar was also placed as Chairman of the Iran-Pakistan gas line project. [144]

In July 2025, Dar addressed the 32nd ASEAN Regional Forum (ARF), calling for enhanced global cooperation to address emerging non-traditional security threats such as climate change, cyber risks, pandemics, and maritime security. He reaffirmed Pakistan’s support for ASEAN’s strategic vision outlined in the Kuala Lumpur Declaration on ASEAN 2045. Dar also highlighted regional tensions, reiterating Pakistan’s position on the Jammu and Kashmir dispute and calling for adherence to international law and preventive diplomacy. His remarks came amid growing regional strain following India’s Operation Sindoor and the indefinite suspension of the Indus Waters Treaty, which have placed Pakistan’s foreign policy under heightened pressure in multilateral forums. [145]

Daronomics

Ishaq Dar served as finance minister of Pakistan across four terms, implementing economic policies known as Daronomics. [146] [147] [148] These policies included maintaining a fixed dollar-rupee exchange rate, supported by foreign currency loans, keeping the State Bank of Pakistan's policy rate low, and managing inflation through subsidies and cheap imports. While aimed at regulating the economy, these measures faced criticism for lacking long-term sustainability. [149] [150] [151]

During his 1998–1999 term, Dar responded to a devaluation crisis by confiscating $11 billion from local dollar accounts, converting them at the official rate of Rs 46 per dollar. [152] This led overseas Pakistanis to rely on informal remittance channels. [153] His 2013–2017 tenure focused on stabilizing the exchange rate by injecting dollars into the market, which ultimately worsened the current account deficit and contributed to Pakistan's 2019 IMF bailout. [154] [155]

Personal life

Family

Dar belongs to a family of businessmen and traders of Kashmiri origin. [156] He is regarded as the most trusted aide of the Sharif family. [157] [158] In 2004, Dar's eldest son married Nawaz Sharif's daughter Asma Nawaz in Jeddah, Saudi Arabia. [159] [160]

Philanthropy

Dar runs two charitable organisations as well. [161] These trusts are aimed to provide shelter to the homeless children or orphans, provide student scholarships and organize mass wedding ceremonies for the less privileged. [14]

Business

Dar's declared assets stand at PKR. 583 million [162] and investments at PKR. 325 million in Pakistan Investment Bonds. [163] As of February 2022, all his personal assets, [164] assets belonging to his family [165] and those owned by his charitable organizations have been unfrozen under court orders. [166]

Notes

  1. Punjabi, Punjabi: محمد اسحاق ڈار ISO: Muḥammad Isḥāq Ḍār

References

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Ishaq Dar
اسحاق ڈار
Mohammad Ishaq Dar in 2024 (cropped).jpg
Dar in 2024
6th Deputy Prime Minister of Pakistan
Assumed office
28 April 2024