Pakistan may struggle to retain IMF’s support

Significance

He replaces Miftah Ismail, who played a key role in ensuring that Pakistan got its bailout programme with the IMF back on track after a hold-up. Dar faces a tough challenge to stabilise the flailing economy. He advocated intervention in currency markets during previous stints as finance minister and now promises to reduce inflation and cut interest rates.

Impacts

• Pakistan will remain heavily reliant on aid to ease the humanitarian crisis arising from the floods.
• Islamabad will look to friendly countries to provide more funding to help shore up the economy.
• The government will continue to face pressure from the opposition to call early elections.