Is Ahsan Iqbal mulling resignation?

ISLAMABAD: Over the past few days, media and social media is abuzz with the rumors of PMLN top leader and Federal Minister for Planning and Development Ahsan Iqbal’s resignation over differences with Planning Commission’s Deputy Chairman Dr Jehanzeb Khan.

Sources close to the federal minister claim he is not resigning but if the minister is not given a free hand and the interference continues, he will call it a day and be ready to accept any other position in the government.

When contacted Dr. Jehanzeb said, “The country needs unison of thought in these challenging times. There is no discord. We are all working together for economic revival and improving the lot of common people.” However, he did not offer any comment on the various issues pointed out to him. Observers in Islamabad point out that Prime Minister Shehbaz Sharif is surrounded by his own team that he brought from Lahore — all of them technocrats who have no political baggage. Furthermore, Shehbaz is seen to have kept Nawaz Sharif’s team at a distance in the federal cabinet and has built his own team who are calling the shots.

Most of the Nawaz’s cabinet members are already out from Prime Minister Shehbaz Sharif’s team whereas those who make it to the current setup do not enjoy the same comfort they used to enjoy previously. The sources in the Prime Minister’s office, however, reject the impression of Nawaz Sharif’s team having been sidelined.

Apart from political reasons, there are several other factors and hindrances which have contributed to the rumours of Ahsan Iqbal contemplating resignation from the Ministry of Planning Commission.

The first reason why Ahsan Iqbal is considering resignation is that the streamlined decision-making is hindered in the Ministry of Planning, Development, and Special Initiatives. Both Ahsan Iqbal, Minister for Planning and Deputy Chairman Planning Commission Jahanzeb Khan have differing approaches to the economic planning growth.

Sources informed that Jahanzeb Khan believes in running the commission in a conventional bureaucratic manner, relying solely on the existing economist group within the ministry. In contrast, Ahsan Iqbal believes in inclusive governance, involving external experts and engaging with relevant stakeholders, industry, and academia — all of whom play pivotal roles in economic growth and development. The two different approaches are causing delay in the decision making.

The second reason for Ahsan Iqbal’s differences, according to sources, is that he wants to develop the 13th Five-Year Plan (2024-2029) aligned with the strategic roadmap of the 5Es framework. This framework suggests both long-term and short-term solutions for uplifting the country’s crippled economy and increasing the country’s economic portfolio to $1 trillion by 2035.

For this purpose, a detailed strategy — Outlook 2035 — was formulated, offering an unconventional approach to economic planning. Whereas the deputy chairman of the Commission’s approach is traditional and he wants to run the Commission on the method of formulating yearly and five-year plan. Sources claim that contrary to the deputy chairman’s approach, Ahsan Iqbal believes the traditional methods have never yielded solid results for incumbent governments. Consequently, Pakistan has always been forced to seek support and guidance from the IMF and World Bank, which has proved disastrous in the long term.

Third reason as per the sources is that the minister wants to improve the functioning of the Planning Commission and build its capacity to match global institutions, learning from their experiences and economic models.

Fourth reason for Ahsan Iqbal’s grievances is that during the finalisation of the 13th Five-Year Plan, all efforts made on developing the 5Es framework and Outlook 2035 during the 26 months of the PDM government were ignored. The sources claim that the plan does not align with any of the aforementioned strategic documents.

The sources claim that the current Deputy Chairman of the Planning Commission, who finalised the 13th Five-Year Plan during the interim government with the help of the economist group and the ministry’s administration, did not consult Minister Ahsan Iqbal after the February 2024 general elections. Despite Minister Ahsan Iqbal’s insistence on aligning with the strategic plans and studies of the political government, the Deputy Chairman obtained approval from the National Economic Council (NEC) without consulting him.

According to the minister’s public statements also, he was not consulted before presenting the plan for approval. He believed the consultation was necessary to give complete ownership to the political government.

Fifth reason why Ahsan Iqbal is thinking about resignation is that he believes the current structure of the Planning Commission requires reforms and a thorough overhaul. The sources informed that he has been holding continuous brainstorming sessions within the ministry with the economist group, sector leaders, and experts from various sectors. Recently, a strategic move has been made to establish the National Economic Transformation Unit (NETU) at the ministry. This unit will assist the government in implementing economic policies and improving the overall strategy to achieve economic goals.

The NETU aims to unlock the potential of development initiatives of the government of Pakistan through strategic communication. This roadmap outlines eleven key activities to promote development, engage stakeholders, and foster a national development discourse. By leveraging this roadmap, the government will amplify impact, foster inclusive growth, and build a brighter future for all.

The sources claim that if the differences between the minister and the deputy chairman are not resolved, the government’s economic policy-making process may suffer in the long run.

Keeping in view the persisting differences in one of the key ministry’s top leadership, Prime Minister Shehbaz Sharif has to interfere and resolve this issue otherwise it will badly affect the government’s performance, the sources suggested.