Veteran banker to tackle Pakistan's economic woes

Karachi: Shaukat Tarin, Pakistan's top economic official, is known as a hard-headed straight-talker who loves a challenge.

Which is good because the veteran banker might just be up against his career's biggest - steering Pakistan out of its most dire economic straits in years.

A balance of payments crisis has left the central bank with foreign reserves of $3.53 billion (Dh12.9 billion), less than September's import bill of $3.81 billion, and there is concern that without help, the country could default on a bond maturing early next year.

Analysts say it's almost inevitable the government will, however reluctantly, have to agree to an IMF programme.

Tarin was appointed the prime minister's top adviser on economic affairs last month, shortly after he turned 55. IMF negotiators are likely to find him a tough nut.

Tarin joined Citibank as a trainee in 1975, after graduating with a master's degree in business from Punjab University, Pakistan's oldest, where he majored in finance.

He rose to take charge of several banks and also served as chairman of the Karachi Stock Exchange before joining the government as de facto finance minister. He can't be appointed a cabinet minster as he is not a member of parliament.

Although Tarin has shunned politics throughout his career, Muneer Kamal, a colleague at Citi-bank, said he wasn't surprised to see his old friend join the government.

"Most people would run away from the sheer weight of responsibility but Shaukat's not that type," said Kamal. "If he feels it's a challenging job and he can do something positive, he won't be shy."

A stocky man with a moustache, Tarin once told the New York Times he was most proud of building up the business at Citibank, where he also worked in the Gulf and Thailand.

"Citibank was where I learned all about banking and my experiences there laid the foundations for my career," he told the newspaper in an interview.

At the request of the government, he took over as chairman and president of Pakistan's largest bank, Habib Bank, in 1997, turning it around from a $230 million loss in 1996 to a profit of $30 million in 1998.

Old colleagues speak of a no-nonsense style and attention to detail.

Despite the gruff manner, colleagues say Tarin has always been fiercely loyal to staff, and they to him, and has always been able to attract top talent. Another colleague said Tarin's political masters would be wise to leave him alone to get on with the job.