The Chief Executive Officer of Habib Bank Ltd (HBL), Pakistan’s largest bank, is reportedly being considered for a key position in the finance team of newly elected Prime Minister Shehbaz Sharif, according to two sources informed Reuters. This development comes ahead of crucial talks with the IMF for a new bailout deal.
Pakistan is in urgent need of a fresh agreement with the IMF to stabilize its struggling $350 billion economy, which is grappling with high inflation, low reserves, and significant external financing requirements.
Muhammad Aurangzeb, the current CEO of HBL, is expected to be appointed as Special Assistant to the Prime Minister on Finance, as per the sources—one from the finance ministry and another with direct knowledge of the discussions.
However, a final decision is pending. Sharif, who was sworn in on Monday, needs to select his cabinet, particularly his finance team, with Pakistan’s current $3 billion, nine-month IMF program set to expire next month.
Spokespersons for Sharif’s party and HBL did not immediately respond to requests for comment.
When contacted, an HBL spokesperson informed Dawn that they cannot offer any comments at this moment.
Local broadcaster Geo News also reported that Aurangzeb might be appointed as the Finance Minister, citing sources close to the prime minister. However, it is important to note that the banker does not currently hold a seat in parliament, which is a requirement by law to become a full minister.
It remains unclear whether Aurangzeb, even as a Special Assistant, would serve as the de facto finance head alongside Sharif, or if someone else would hold the additional role of Finance Minister.
Aurangzeb has previously served as the CEO of JP Morgan’s Global Corporate Bank based in Asia and brings extensive experience working with global markets.
Apart from the IMF deal, Pakistan also aims to attract foreign investment to bolster its reserves, which are crucial for meeting significant external financing needs and revitalizing its sluggish economy.
Shortly after taking the oath, Sharif held a meeting with finance officials and advisers, directing them to initiate talks with the IMF for an Extended Fund Facility—a long-term package deemed essential to prevent a potential default.
Aurangzeb was part of this meeting, as indicated by a video of the gathering shared with journalists by the government’s information team.
