Asad Umar

Pakistani politician and former finance minister

Compiled from 2 recorded interviews. Every statement below is drawn from the passage cited beside it.

Asad Umar previously served as Pakistan's Minister of Finance and Minister of Planning. He also served as the chairman of the Pakistan Business Council.

Early career and private sector

In interior Sindh, Umar worked on dairy projects, a power plant, and a fertilizer expansion in Ghotki. In Australia, he visited Gippsland. [2]

Political and ministerial career

While in the opposition, Umar served as the chairman of the parliamentary standing committee on industries. Roughly a month or two after his government came into power in 2018, he visited the stock exchange. [1][2]

During his tenure as finance minister, six additional secretaries reported to him, and he contacted Colonel, the revenue minister of Punjab. Umar introduced a second supplementary finance budget addressing renewable energy and digitization, and had the law changed through a supplementary budget to permit NADRA data sharing for tax analytics. He also organized an event honoring the top 100 taxpayers where the Prime Minister presented awards, and attended a bilateral meeting alongside Prime Minister Imran Khan. [1][2]

Umar traveled to Washington, D.C. for a meeting with Deputy Managing Director David Lipton, negotiating that a market-based flexible exchange rate system was acceptable rather than a free float, and finalized a deal within fifteen minutes that was formally signed in Pakistan days later. He secured approval from the Prime Minister to sign a technical agreement with Harvard University. In managing development spending, he reoriented funding toward education, health, the environment, and skill development, while using four-day satellite-based reports and competitively chosen private sector firms to monitor road projects. During the COVID-19 pandemic, the government reopened the economy quickly, resulting in a rapid recovery. [1][2]

In the National Assembly, Umar delivered a speech warning that the Titanic was about to hit an iceberg. Beginning in April 2022, he attempted to explain the economic and political situation to opposition members. Beginning in 2021, he informed friends, family, and party colleagues of his plan to step down in 2023. He stated a preference not to hold a cabinet portfolio in any future government, though he noted that if he were to continue in government, he would want to lead the IT ministry. [1][2]

Economic and policy views

Umar views Pakistan's economic situation as the darkest and scariest period in its history, characterising the economic crisis as entirely man-made. He stated that revised data would show negative economic growth, with a 0.3 percent growth rate representing the sharpest single-year slowdown since 1971. He estimated an external financing gap of between four and six billion dollars, noted food inflation at 50 percent, and stated that the macroeconomy is on a downward sloping curve. In his analysis, Pakistan's internal debt is completely unsustainable and must be addressed, while a strong positive correlation exists between fiscal deficits and current account deficits. [1]

Umar believes that Pakistan possesses immense national potential, but cannot resolve its economic difficulties without structural reforms, which take time to implement and produce results. He maintains that economics cannot be separated from politics, noting that politicians and the military have been the dominant factors in governance, and that a conflict of interest exists between the governing elite and the public. He argues that political continuity educates voters and compels politicians to make better decisions, while observing that public awareness in Pakistan has reached stratospheric levels. On external finance, he views the International Monetary Fund as a necessary global lender of last resort whose purpose is debt sustainability rather than public prosperity, and noted that Pakistan historically had a disciplined central bank that managed the economy well. [1][2]

Umar advocates for an economic revolution driven by digitization, calling for major investment in digital skills for Pakistani youth and viewing spectrum licenses and bandwidth as digital motorways for the future economy. He sought to create a deputy governor for digitization at the central bank and a special assistant for digitization in the finance ministry, stating that digitization incentives directly generate increased revenue, and personally made phone calls to the private sector prior to a new State Bank policy launch. In the power sector, after watching a presentation on electricity markets in Sydney or Melbourne, he supported privatization and transitioning to a market-based energy system, arguing that market competition generates efficiencies and that ownership structure is a minor issue compared to the lack of a competitive market. [1][2]

Umar maintains that sustainable, non-inflationary economic growth is impossible without productivity-led growth, and that public sector development expenditure crowds in private sector investment. He argues that state-owned institutions and enterprises cannot be reformed or privatised while remaining controlled by ministry bureaucrats, including joint, deputy, and additional secretaries. Regarding real estate, he identified the sector as the safest avenue created to conceal undeclared money, stating that the economy cannot be fixed while property serves as a sinkhole for black money and noting that real estate players provide the largest amount of funding in Pakistani politics. [1][2]

Timeline

2018
Visited the stock exchange shortly after his government came into power[1]
2021
Informed colleagues and family of his intention to step down in 2023[1]
2022
Began trying to explain the political and economic situation to opposition members in April[1]

Appearances

DateTitleWhere
2023-06-09 Pakistan's economy has never been this dark Thought Behind Things
2023-03-10 Asad Umar: Pakistan cannot grow without deep reform Thought Behind Things

Frequently asked questions

Who is Asad Umar?

Asad Umar is a Pakistani politician who served as Pakistan's Minister of Finance and Minister of Planning. He also served as chairman of the Pakistan Business Council, and as chairman of the parliamentary standing committee on industries while in opposition.[1][2]

What did Asad Umar do as finance minister?

Six additional secretaries reported to him as finance minister. He reoriented development spending toward education, health, the environment and skill development, and monitored road projects from his office using satellite-based reports received every four days, with private sector firms chosen competitively to handle monitoring and evaluation. He had the law changed through a supplementary finance budget so NADRA data could be shared for tax analytics, and introduced a second supplementary finance budget covering renewable energy and digitisation. He travelled to Washington for a meeting with Deputy Managing Director David Lipton and reached a deal within fifteen minutes that was signed in Pakistan a few days later.[1][2]

Why did Asad Umar leave politics?

Beginning in 2021, he told his friends, family and party colleagues that he intended to quit in 2023. He has said he had been trying to explain the political and economic situation to opposition members since April 2022.[1]

What does Asad Umar say about Pakistan's economy?

He considers Pakistan's economic situation the darkest and scariest period the country has ever seen, and the crisis entirely man-made. He said a 0.3 percent growth rate represents Pakistan's sharpest single-year slowdown since 1971, and estimated the external financing gap at between four and six billion dollars. He holds that Pakistan must address its internal debt because it has become completely unsustainable.[1]

References

  1. Pakistan's economy has never been this dark . Thought Behind Things , 2023-06-09.
  2. Asad Umar: Pakistan cannot grow without deep reform . Thought Behind Things , 2023-03-10.
Show the source passages (79 statements)
  1. He considers Pakistan's economic situation to be the darkest and scariest period the country has ever seen. ऐसी कभी हुई नहीं Pakistan की economy. This is the absolutely the darkest period, the most scary situation that Pakistan has ever seen.
  2. He stated that revised figures would show Pakistan experiencing negative economic growth. So जब यह revise number आएगा तो 100% आपकी negative growth होगी.
  3. He stated that a 0.3 percent growth rate represents Pakistan's sharpest single-year economic slowdown since 1971. But even यह 0.3% जो growth है यह Pakistan में 1971 के बाद सबसे sharper slowdown of the economy है एक single साल के अंदर.
  4. He considers Pakistan's economic crisis to be entirely man-made. So that's what distinguishes this crisis कि यह entirely man made crisis है
  5. He estimated Pakistan's external financing gap to be between four and six billion dollars. लेकिन उस सबके बावजूद भी एक gap है which is estimated to be चार से छह billion dollars का.
  6. He holds the view that there is a strong positive correlation between the fiscal deficit and the current account deficit. तमाम studies यह show करती हैं कि there is a very strong positive correlation between the fiscal deficit and the current account deficit.
  7. He stated that Pakistan must address its internal debt issue because it has become completely unsustainable. हमें अपने internal debt के issue से भी deal करना पड़ेगा. This is becoming completely unsustainable
  8. He stated that he had been trying to explain the political and economic situation to opposition members since April 2022. यह मैं april दो हज़ार बाइस से समझा रहा हूँ अपने opposition के दोस्तों, मतलब हमारी opposition जो है
  9. He believes that the International Monetary Fund was created to serve as a global lender of last resort. IMF create किया गया था as a global lender of last resort.
  10. He views the purpose of the International Monetary Fund as creating debt sustainability rather than improving public prosperity or per capita income. IMF का purpose यह है कि आपकी debt sustainability create की जाए. IMF का मकसद यह नहीं है कि आपके आवाम की ज़िंदगी खुशहाल हो, आपकी per capita income बढ़े
  11. He holds the view that the International Monetary Fund is needed. So IMF is needed
  12. He believes that economics cannot be separated from politics. economics को politics से आप divorce कर ही नहीं सकते. मैं बार बार लोगों को बताता हूं कि कोई वजह है कि इस subject का नाम originally political economy था.
  13. He believes that there is a conflict of interest between the elite controlling Pakistan's governance structure and the Pakistani public. So there is a conflict of interest between elite जो governance structure Pakistan का control कर रहा है और Pakistan के पच्चीस करोड़ लोग.
  14. He considers politicians and the military to be the two dominant factors in Pakistan's governance over the years. दो ही set of factors हैं Pakistan की governance में over the years आगे पीछे कभी एक होता है dominant, कभी दूसरा होता है dominant, कभी दोनों मिलकर कर रहे होते हैं या politicians हैं और या फौज हैं.
  15. He maintains that political system continuity educates voters over time and compels politicians to make better decisions. system की अगर continuity होगी, people have to go back and get the votes and come back into power. Over a period of time educate हो जाएगी, voter भी educate हो जाएगा और we'll force the politicians to make better choices.
  16. He stated that Pakistan's macroeconomy is on a downward sloping curve. जब आप macro economy देखते हो तो आप देखते हो कि Pakistan एक downward sloping curve के ऊपर है
  17. He stated that during the COVID-19 pandemic, the government reopened the economy quickly, leading to a quick recovery. That's why we opened up the economy quickly and then bounce back was also quick, right?
  18. He stated that food inflation in Pakistan was at 50 percent. So जो inflation चल रही है 50% food inflation है Pakistan में, 50% food inflation, right?
  19. He stated that public awareness in Pakistan has reached exceptionally high levels. इसमें कोई शक नहीं है कि public में awareness level is stratospheric.
  20. He believes that the level of public awareness is stratospheric. इसमें कोई शक नहीं है कि public में awareness level is stratospheric.
  21. He believes that structural reforms are difficult, take time to implement, and take even more time to produce results. structural reform by definition is something जो मुश्किल है करने की, जिसकी implementation में time लगता है और जिसके results के अंदर उससे भी ज़्यादा time लगता है.
  22. He supports the privatization of the electricity sector. बिजली के ऊपर अभी तक सारी debate IPP versus privatize कर दें et cetera et cetera. अच्छी चीज़ है बिल्कुल कर देना चाहिए privatize.
  23. He believes that the ownership structure in the power sector is a minor issue and that the primary problem is the lack of a competitive market. The ownership structure is the minor part of the problem. Fact is कि real problem यह है कि competitive market नहीं है.
  24. He believes that market competition generates efficiencies. Competition होता है जिसको creative destruction बोलता है जो Joseph Schumpeter. तो उस competition के result में efficiencies आती
  25. He watched a presentation on the electricity market in either Sydney or Melbourne. यह आज से मैंने कई साल पहले, I can't remember Sydney था या Melbourne था. दोनों में से किसी एक जगह पर उसकी presentation देखी थी उनकी.
  26. He believes economic revolution will come through digitization. अगर इंकलाव आएगा ना इस मईशत के अंदर, वह आएगा digitizations.
  27. He considers spectrum licenses and bandwidth to be digital motorways upon which the future economy must be built. These licenses and the bandwidth that goes with it are the digital motorways. इसके ऊपर पूरी future की economy खड़ी होनी है.
  28. He advocates for massive investment in digital skills for Pakistani youth. दूसरी तरफ massive investment करें digital skills के ऊपर Pakistan के youth के अंदर.
  29. He believes that every measure incentivizing digitization directly leads to increased revenue. Every step that you take which incentivizes digitization will directly lead to revenue increase also.
  30. Six additional secretaries reported to him when he served as finance minister. मुझे as finance minister छह additional secretary report करते थे.
  31. The State Bank invited him to the launch of its first policy to support digital payments. State bank ने किया था. जो पहली policy आई digital payments को support करने के लिए और मैंने before I went to that event state bank ने मुझे उसके launch पर बुलाया हुआ था.
  32. Beginning in 2021, he told his friends, family, and party colleagues that he intended to quit in 2023. मैं दो हज़ार इक्कीस से मैं अपने दोस्तों को और मेरी party के अंदर जो मेरे दोस्त थे उनको मेरी family को मैं बोलता रहा यार दो हज़ार तेईस जो है ना मैंने quit कर देना.
  33. He stated that if he were to continue in government, he would want to lead the IT ministry. So पहले used to say कि अगर, अगर मैंने continue किया so the ministry that I would want to run is the IT ministry
  34. He sought to create a deputy governor of digitization position in the central bank and a special assistant for digitization position in the finance ministry. What I wanted to do was create two positions. One in central bank. एक additional position create करे deputy governor की. तीन deputy governor एक additional और वह हो deputy governor digitization. Right. और similarly finance ministry के अंदर एक special assistant लेकर आना जिसका काम सिर्फ़ digitization हो.
  35. He gave a speech in the National Assembly warning that the Titanic was about to hit the iceberg. मेरे National Assembly में speech मैंने कहा यह Titanic is about to hit the iceberg
  36. He traveled to Washington, D.C. for a meeting with Deputy Managing Director David Lipton. जब मैं Washington DC किया, deputy, managing director David Lipton. David Lipton के साथ meeting है.
  37. He argued during negotiations that a free float did not make sense, whereas a market-based flexible exchange rate system was acceptable. मैंने कहा free float कह रहे हैं. मेरे ख्याल में इस वजह से free float doesn't make sense but a market based flexible system is ok.
  38. He reached a deal within fifteen minutes that was formally signed in Pakistan a few days later. पंद्रह minute में हमारी deal हो गई है and then उसके कुछ दिन के बाद वह Pakistan आकर sign भी हो गई formally.
  39. He holds that government development expenditure through the public sector development crowds in private sector investment. PSDP जो होता है जो development expenditure रहता है government का it crowds in private sector investment
  40. He reoriented development spending to increase investment in sectors including education, health, the environment, and skill development. So आप education में investment आपने कम की हुई है, health के ऊपर investment कम है, environment के ऊपर investment कम है, skill development के ऊपर investment कम है, etc etc. So हमने reorient किया. इन sectors के अंदर हमने investment बढ़ाई.
  41. He used satellite-based reports received every four days to monitor road projects from his office. फिर हमने कहा कि अच्छा every four day satellite base मेरे पास report आ रही है and I can see office में बैठ के कि यह फलानी सड़क जो है यह इसके अंदर gap है यह नहीं है.
  42. He involved private sector firms chosen on a competitive basis to handle project monitoring and evaluation. Second हमने private sector convolve कर दिया monitoring and evaluation के अंदर बजाय के सरकारी officer भरने के लिए जिनका career path नहीं है, कोई incentive नहीं है, private sector firms भी competitive basis के ऊपर और उनको involve कर दिए monitoring and evaluation के अंदर.
  43. Umar believes that the private sector should be engaged on a competitive basis. आपको ज़्यादा से ज़्यादा private sector को engage करना है, लेकिन engage इस तरीके से करना है कि competitive based हो.
  44. Umar believes the economy cannot be fixed as long as real estate in Pakistan is used as a sinkhole for black money. जब तक आप Pakistan के real estate को black money के sinkhole के लिए नहीं इस्तेमाल करते रहेंगे या इस्तेमाल करते रहेंगे आप कोई मईशत को ठीक नहीं कर सकते.
  45. Umar stated that both and he had made attempts regarding reforms in the real estate sector. So attempts have been made. Right. मिफ्ता ने भी की थी, मैंने भी की थी,
  46. Umar believes that the largest amount of funding in Pakistani politics comes from real estate players. मेरे ख्याल में जो सबसे ज़्यादा पैसा आता है ना politics के अंदर, वह real estate players की तरफ से आता है.
  47. Umar believes that sustainable non-inflationary growth is impossible without productivity-led growth. जब तक आपके पास productivity led growth नहीं आएगी, दुनिया की कोई economy आज तक ईज़ाद नहीं हुई है जहां sustainable non inflationary growth हो सके without productivity led growth
  48. He served as finance minister. Remember I had called him when I was finance minister.
  49. While serving as finance minister, he contacted Colonel, who was Punjab's revenue minister. I remember Colonel साहब, Colonel अनवर नाम से शायद उनका इधर ही अटक्के हैं जो revenue minister थे Punjab के. Remember I had called him when I was finance minister.
  50. He believes that sustainable, non-inflationary economic growth is impossible without productivity-led growth. जब तक आपके पास productivity led growth नहीं आएगी, दुनिया की कोई economy आज तक ईज़ाद नहीं हुई है जहां sustainable non inflationary growth हो सके without productivity led growth
  51. He served as the chairman of the Pakistan Business Council. And मुझे अभी तक याद है I was chairman Pakistan business council at that time
  52. He visited the stock exchange roughly a month or two after his government came into power in 2018. दो हज़ार अठारह में हमारी युकुमत आने के कोई महीने दो महीने बाद में कड़ा की stock exchange में गया हुआ था
  53. He believes that Pakistan has historically had a disciplined, high-quality central bank that managed the economy well. Pakistan की एक बहुत अच्छी चीज़ रही है हमारा अच्छा high quality central bank रहा है, बड़ा disciplined central bank रहा है और उसने अच्छी economic management की है
  54. He previously served as Pakistan's Minister of Finance and Minister of Planning. डी फॉर्म ऑफ फाइनेंस मिनिस्टर डी फॉर्मर मिनिस्टर ऑफ प्लानिंग आज वेल
  55. He believes Pakistan possesses immense national potential. पोटेंशियल में हमेशा से कहता हूं इस मुल्क के अंदर इस कॉम के अंदर बेतहाशा पोटेंशियल है
  56. He believes Pakistan cannot emerge from its economic difficulties without structural reforms. पाकिस्तान को बिल्कुल यहां से हम स्ट्रक्चरल रिफॉर्म्स के बगैर बाहर नहीं निकाल सकते
  57. Umar believes that sustainable non-inflationary economic growth is impossible without productivity growth. जब तक आपकी प्रोडक्टिविटी ग्रोथ ना हो तो सस्टेनेबल नॉन इंफिनिटी ग्रोथ हो ही नहीं शक्ति नामुमकिन है
  58. Umar visited Gippsland in Australia. मैं ऑस्ट्रेलिया गया हुआ था और वहां पर जीपीएस लैंड है आईएफ आई ऍम नोट मिस्टेक इन जगह का नाम से कोई दो घंटे की ड्राइव से हम वहां पहुंचे
  59. Umar worked on dairy projects, a power plant, and a fertilizer expansion in Ghotki in interior Sindh. इंटीरियर सिन में घोटकी की ज़मीन बिकॉज़ हमने आ वहां पे देरी के कोई प्रोजेक्ट्स किए अन हमने पावर प्लांट भी लगाया फेर लाइटर एक्सपेंशन की
  60. Umar considers the real estate sector in Pakistan to be the safest avenue created to conceal undeclared money. उसकी बुनियादी वजह ये है की सबसे बड़ा सेफेस्ट तरीका अपनी ब्लैक पैसे को हाइड करने का आपने सैम क्रिएट किया हुआ रियल एस्टेट का
  61. Umar worked in the ministry of on structural economic reform to improve Pakistan's export competitiveness. यह प्लानिंग मिनिस्ट्री में कम हुआ फरवरी के में भी प्रेजेंटेशन थी आ आई थिंक फरवरी के और में हमने अप्रूवल ले लिया था आ हमने प्रेजेंट किया और एक पाकिस्तान की इकोनामी को किस तरीके से हमने एक्सपोर्ट कंपैटिबल्स की तरफ लेक जाना है
  62. He worked on structural economic reforms in the. बहुत हमने कम किया यह प्लानिंग मिनिस्ट्री में कम हुआ
  63. He met with professor to discuss an economic agreement. एक पाकिस्तान असीम ख्वाजा जो पहले 10 प्रोफेसर हार्वर्ड में पाकिस्तान और वो और सीनरी एक पोजीशन पे ए गए हैं और दो तीन सेंटर्स उनके नीचे आते और उनमें से एक यह भी है हमारी गवर्नमेंट चेंज होने के बाद आप पाकिस्तान आए हुए थे तो मेरी उनसे इस पे बात भी हुई थी
  64. He secured approval from the Prime Minister to sign a technical agreement with Harvard University. हमने ये फैसला किया था अप्रूवल भी प्राइम मिनिस्टर से ले लिया था की मैं एक्चुअली हार्वर्ड से साइन करेंगे एक टेक्निकल एग्रीमेंट
  65. He met with , the head of the. लेफ्ट जर्नल जाकी मंच जो एसपीडी के हमारे हेड होते थे उनके साथ में जाके मिला
  66. He arranged a meeting between the and the. उनको हमने कनेक्ट किया के इकोनॉमिस्ट हमारे डॉक्टर वेयर जो थे उनके मैंने वहां मीटिंग सेट अप करवाई
  67. He attended a bilateral meeting with President alongside Prime Minister Imran Khan. हम गए सीजन पिंक के साथ अब इमरान खान की मीटिंग हो रही है हम उनके साथ बैठे हैं
  68. He personally made phone calls to the private sector before the announcement of a new State Bank policy. स्टेट बैंक की जो नई पॉलिसी आई थी मैंने खुद फोन कॉल्स किया प्राइवेट सेक्टर में या अनाउंसमेंट ऑफ डी पॉलिसीज से पहले
  69. He introduced a second supplementary finance budget that addressed renewable energy and digitization. मेरा जो सेकंड सप्लीमेंट्री फाइनेंस बजट था उसके अंदर अगर आप देखें तो एक तो आ रेनवाल एनर्जी के ऊपर और एक ये डिजिटाइजेशन के ऊपर
  70. He organized an event honoring the top 100 taxpayers where the Prime Minister presented awards. मुझे याद है मैंने 100 टॉप टैक्स पेयर्स का एक इवेंट ऑर्गेनाइज किया था पीएम ने उनको अवार्ड दिए थे
  71. He served as Finance Minister. मैं फाइनेंस मिनिस्टर बना उसके फॉर्म बाहर सर्दियों आने वाली थी गैस प्राइसिंग हम देख रहे थे
  72. Umar served as the chief executive officer of. एक दिन मैं एग्रो सीईओ होता है
  73. Umar had the law changed through a supplementary finance budget to allow NADRA data to be shared for tax analytics. मैंने ये कहा की यार ये टैक्स रिटर्न जो टैक्स रिवीजन को चेक करने के लिए मुझे डाटा एनालिटिक्स रन करवाने द डाटा सारे का सारा नादरा के पास पड़ा हुआ मेरे को एंपियर का डाटा हमसे शेयर करते हैं उनका जी तो हो नहीं सकता क्यों नहीं हो सकता है लॉ में ही अलाउड नहीं है अच्छा मेरी सप्लीमेंट्री फाइनेंस बजट में डाल के लो चेंज करवा दिया
  74. Umar believes that state-owned institutions cannot be reformed or privatised as long as they are controlled by government joint secretaries, deputy secretaries, and additional secretaries. मेरा बिलीव था और आज तक यह स्टेट ऑन इंस्टीट्यूशंस आपके जॉइंट सेक्रेटरी डिप्टी सेक्रेटरी एडिशनल सेक्रेटरी के नीचे हैं ना ये कभी रिफॉर्म होंगे और ना यह प्राइवेट हो सकेंगे
  75. He served as the chairman of the parliamentary standing committee on industries while in the opposition. मिनिस्ट्री ऑफ इंडस्ट्रीज जो है मैं स्टैंडिंग कमेटी का अध्यक्ष होता था इंडस्ट्रीज का जब मैं अपोजिशन में था
  76. He served as the finance minister and chaired the. मैं ईसीसी का चेयर था इस फाइनेंस मिनिस्टर
  77. He holds the view that state-owned enterprises will not be reformed or privatised as long as they remain under ministry bureaucrats. जब तक मेरा बिलीव था और आज तक यह स्टेट ऑन इंस्टीट्यूशंस आपके जॉइंट सेक्रेटरी डिप्टी सेक्रेटरी एडिशनल सेक्रेटरी के नीचे हैं ना ये कभी रिफॉर्म होंगे और ना यह प्राइवेट हो सकेंगे
  78. He believes that energy sector problems cannot be resolved without transitioning to a market-based energy system. अल जो रिफॉर्म है वो [] मार्केट बेस्ड जब तक आप एनर्जी मार्केट पे [] नहीं जाएंगे आपके प्रॉब्लम्स खत्म हो ही [] नहीं सकते
  79. He stated that he preferred not to hold any cabinet portfolio in a future government. जीरो चेस है और मेरी पर्सनल अगर आप फाइट करें तो मैं मेरे पास कोई कैबिनेट पर यू नहीं होगा