‘Not an experiment’: At 59, Miftah Ismail is hoping for a sweet transition with political party launch

KARACHI: At 59, Dr Miftah Ismail can lead a sweet life. A little over 31% share in a company valued by stock market investors at roughly $340 million can give you room for comfort.

Yet, in an oped published earlier this month, Ismail announced launching a political party. Its name is still on the drawing board but the words ‘public’ and ‘reform’ seem to be keywords.

“God has gifted us – placed us in a position of privilege and power. If we don’t do it, who will?” the two-time former finance minister told Business Recorder in an interview in Karachi.

Ismail had a falling out with the Pakistan Muslim League-Nawaz (PML-N), which — despite insisting it lost ‘political capital’ during a short stint before the elections as it took ‘tough economic decisions’ – continues to sit in the corridors of power in Islamabad.

Since his unceremonious exit as finance minister in September 2022, Ismail – along with former premier Shahid Khaqan Abbasi – had been campaigning for a major overhaul across almost all areas. From the literacy rate to population control, there is hardly a topic they didn’t touch. Their appearances at major universities and panel talks in several cities were seen by many analysts as a precursor to the launch of yet another political party ahead of the general elections in February this year.

At the time, there were even reports of Ismail joining the Pakistan Tehreek-e-Insaf (PTI), a party that PML-N has remained at loggerheads with over the control of Pakistan’s most populous province Punjab.

But, sitting in his personal office at the premises of Ismail Industries in Karachi, the Wharton School graduate said the timing was a bit off.

“There wasn’t enough time before the elections. Just to organise a party takes two years, and to reach the masses requires even more time.

“We don’t have any artificial help. We have to grow this party organically. But if we start today, we can stand on our feet in the next two to three years,” said Ismail, supremely confident that the party would be ready for the next general elections and field a candidate across the entire country.

But there are several obstacles in the way. Commentators believe Ismail, Abbasi and the third co-founder Mustafa Nawaz Khokhar do not have the ‘mass appeal’ that made their counterparts in politics so successful before them. Some are also skeptical that it could be the launch of ‘another experiment’, alluding to the belief that there are stronger, invisible hands that run the show.

Ismail denied the insinuation.

“Everybody’s asked me this. There isn’t a shortage of political parties,” said Ismail, smiling as he looked to grab his cup of tea that had now gone cold. A request for another cup was made as the discussion went deeper.

Ismail has a fair point.

Pakistan has just over 200 universities in the entire country. In comparison, the Election Commission of Pakistan (ECP) – the body responsible for free and fair elections in the country – has over 166 political parties enlisted.

“Almost all of them listen.

“You will see our struggle and if we win, it will be due to votes. We will work together, but we are not looking for employment. We have the competence and sincerity.

“We are also not the coming together of some individuals. We have been holding seminars and talks for a while now. This has now evolved.

“We visited several cities, and saw there was a vacuum, a feeling of discontent. There is intense polarisation. No one talks about the public or their grievances.”

Among Pakistan’s grievances include runaway inflation that has only shown signs of slight deceleration in recent months. The headline inflation figure hit a record high in May last year, triggering the country’s central bank to raise the key interest rate further.

Since then, while inflation has reduced from 38% to 17.3% in April 2024, the State Bank of Pakistan (SBP) is still looking for proof that this trend will be sticky. It hasn’t brought down the rate in seven meetings. In its latest commentary, the central bank attributed caution to recent geopolitical events and the upcoming budget where measures “may have implications for the near-term inflation outlook”.

Regardless of the SBP’s caution, businesses in Pakistan have groaned at the high cost of finance. Such is the state of Pakistan’s economic growth that a prominent auto sector company has a higher amount listed on its ‘other income’ than profit from core operations.

The fact is not lost on Ismail.

He resigned from directorship at his family-owned business in 2014, but occupies key positions at various private entities. Ismail Industries may also be a bit more immune to slower economic growth in the country. Its main business – the manufacture and trade of sugar confectionary items – helped the company post a profit of Rs5.37 billion in the nine months that ended March 31, 2024, an amount nearly 34% higher than the same period of the previous year. But a Rs6-billion entry in the company’s finance cost ate away at even higher earnings.

Together with high interest rates, Pakistanis are also battling personal budgets, looking to balance slow earnings growth with spiraling energy and fuel bills.

Ismail said the public needs to be put first.

“Everyone has their personal slogan – ‘why was I pushed out’, ‘regime-change’ etc.

“But no one talks about the public. Around 90% of Pakistan that is poor is facing a very cruel situation. Around 9-10% middle-income people are better off, but are still struggling. Pakistan is (only) good for the 1%.

“The central motto is: we want to provide economic opportunity to every Pakistani.”

As the conversation went towards issues facing Pakistan, Ismail listed down failures that have plagued this country for over seven decades.

“We will have to change the system of governance,” said Ismail, arguing that the government needs to reduce its footprint. “A country cannot become rich until its people are wealthier. Basic things like education, health, jobs need to be resolved.”

Ismail stressed that the political party’s launch is solely based on improving Pakistan’s socioeconomic standing. “Abbasi and I were offered ministries. But that wasn’t the point. If you can’t do anything, then what are you there for?”

Ismail’s profile has also been checkered with some time he spent incarcerated. “It was five months and 20 days in 2019,” Ismail precisely recalled.

Ironically, this is also roughly the time he spent as finance minister during PML-N’s short stint after the no-confidence vote against PTI founder Imran Khan.

“The case was a bogus one. I was released and the case ended. To date, no PTI leader is ready to say that this was a fair incarceration. They admit it was wrong.

“Miftah Ismail’s integrity, Shahid Abbasi’s integrity, Mustafa Nawaz’s integrity – no one raises questions.

“No one can also either question my competence or their competence. We will go forward with this combination. The rest is up to the people.”

Ismail briefly also touched upon a preferred portfolio. “It makes sense to look at finance.”

Copyright Business Recorder, 2024