ISLAMABAD: Pakistani Prime Minister Imran Khan made a sweeping cabinet reshuffle on Thursday after only seven months in power and appointed Abdul Hafeez Shaikh as de facto finance minister to steer the country through worsening economic turmoil.
Pakistan is on the brink of signing up for it 13th International Monetary Fund (IMF) bailout since the late 1980s in a bid to stave off a balance of payments crisis and ease ballooning current account and fiscal deficits.
Khan’s government inherited a wobbly economy but the former cricketer has come under intense criticism for failing to fulfil his promises that he would steady the ship and bring prosperity to Pakistan.
Khan late on Thursday announced 10 ministerial appointments in a shakeup that included the departure of Finance Minister Asad Umar, who has been a close ally to Khan for many years.
Shaikh, who already served as finance minister from 2010-2013 under the opposition Pakistan Peoples Party when it was in power, has been appointed as “Adviser on Finance” but will be heading the finance ministry once again.
In Pakistan it is common for financial experts to be given the title of “adviser,” rather than federal minister, to head the finance ministry when they are not a sitting member of parliament.
Earlier in the day Umar, announcing that he would step down, said Pakistan would still go into an IMF program but warned his successor that he faces a tough job ahead.
“No one should expect from the new finance minister that things could be better in three months’ time,” Umar told reporters in capital Islamabad on Thursday afternoon.
“The next budget will be a difficult one,” he added, referring to annual spending plans for the financial year ending June 2020 due to announced in May.
Umar, who had been asked to quit on Wednesday night, said he still strongly believed Khan was the best hope for the country.
Influential Information Minister Fawad Chaudhry has been moved to the science and technology ministry, while retired Brig. Ijaz Ahmed Shah has been appointed as Interior Minister. Energy expert Nadeem Babar has been appointed to lead the petroleum ministry.
Khan was widely expected to turn to a steady hand to replace businessman Umar, who was the former chief executive of Engro, Pakistan’s biggest private conglomerate.
Shaikh, a U.S-educated economist who worked at Harvard University, also spent many years working for the World Bank and had also been the privatization minister during the government of former military dictator General Pervez Musharraf.
Speculation that Umar would be replaced had been rife for months, with some business groups and investors unhappy with Umar’s strategy of seeking short-term loans from allies such as China and Saudi Arabia instead of finalizing an IMF rescue package after Khan assumed power in August.
Khan’s government has got temporary relief from allies, including China and Saudi Arabia, who offered short-term loans worth more than $10 billion to buffer foreign currency reserves and ease pressure on the current account.
But it was not enough.
Umar has been leading negotiations with the IMF but has faced criticism over a worsening economic outlook on his watch, with inflation at a five-year high and the local rupee currency down about 35 percent since Dec 2017.
The central bank last month cut growth estimates, forecasting the economy to expand 3.5 to 4 percent in the 12 months to the end of June, well short of a government target of 6.2 percent. The IMF paints a gloomier picture, predicting growth of 2.9 percent in 2019 and 2.8 percent next year. (Additional reporting by Saad Sayeed; Writing by Drazen Jorgic; Editing by Robert Birsel, Clarence Fernandez and Andrew Heavens)
Pakistan PM Khan appoints new finance ministry chief in major reshuffle
Pakistan PM Khan appoints new finance ministry chief in major reshuffle
- Abdul Hafeez Shaikh named de facto finance minister to steer country through worsening economic turmoil
- Information Minister Fawad Chaudhry moved to science and technology ministry, retired Brig. Ijaz Ahmed Shah appointed interior minister
Two Pakistani men indicted in $10 million Medicare fraud scheme in Chicago
- Prosecutors say defendants billed Medicare and private insurers for nonexistent services
- Authorities say millions of dollars in proceeds were laundered and transferred to Pakistan
ISLAMABAD: Two Pakistani nationals have been indicted in Chicago for allegedly participating in a $10 million health care fraud scheme that targeted Medicare and private insurers, the US Justice Department said on Thursday.
A federal grand jury charged Burhan Mirza, 31, who resided in Pakistan, and Kashif Iqbal, 48, who lived in Texas, with submitting fraudulent claims for medical services and equipment that were never provided, according to an indictment filed in the US District Court for the Northern District of Illinois.
Medicare is the US federal health insurance program primarily serving Americans aged 65 and older, as well as certain younger people with disabilities.
“Rooting out fraud is a priority for this Justice Department, and these defendants allegedly billed millions of dollars from Medicare and laundered the proceeds to Pakistan,” Deputy Attorney General Todd Blanche said in a statement.
“These alleged criminals stole from a program designed to provide health care benefits to American seniors and the disabled, not line the pockets of foreign fraudsters,” he added. “We will not tolerate these schemes that divert taxpayer dollars to criminals.”
Prosecutors said that in 2023 and 2024, the defendants and their alleged co-conspirators used nominee-owned laboratories and durable medical equipment providers to bill Medicare and private health benefit programs for nonexistent services.
According to the indictment, Mirza obtained identifying information of individuals, providers and insurers without their knowledge and used it to support fraudulent claims submitted on behalf of shell companies. Iqbal was allegedly linked to several durable medical equipment providers that filed false claims and is accused of laundering proceeds and coordinating transfers of funds to Pakistan.
Mirza faces 12 counts of health care fraud and five counts of money laundering. Iqbal is charged with 12 counts of health care fraud, six counts of money laundering and one count of making a false statement to US law enforcement. Arraignments have not yet been scheduled.
Three additional defendants, including an Indian, previously charged in the investigation, have pleaded guilty to federal health care fraud charges and are awaiting sentencing.
An indictment contains allegations, and the defendants are presumed innocent unless proven guilty in court.
