Shaukat Aziz (born 6 March 1949) is a Pakistani-born British former banker who served as the 15th prime minister of Pakistan from 28 August 2004 to 15 November 2007. When his term as Prime Minister was over, he immediately left Pakistan and settled in the United Kingdom. Previously, he served as the finance minister of Pakistan from 6 November 1999 to 15 November 2007.

Aziz was born in Karachi. He graduated from the Institute of Business Administration and later joined the corporate staff of the CitiBank Pakistan in 1969. He initially served as CitiBank financier, and became executive vice-president of Citibank in 1999.

In 1999, Aziz entered politics on the personal request of Pervez Musharraf and moved to Pakistan from the United States to assume charge of the Finance Ministry as the finance minister. In 2004, Aziz was nominated by Musharraf as his prime minister after taking resignation from Zafarullah Khan Jamali on 6 June 2004.

Early life and education

Shaukat Aziz was born in Karachi, Pakistan, on 6 March 1949. He studied at Saint Patrick's School, Karachi and Abbottabad Public School, Abbottabad, Pakistan. His father, S.A. Aziz

The PBC moved his family to Abbottabad, North West Frontier Province where he attended the Abbottabad Public School. Later, the family moved back to Karachi. Aziz matriculated and obtained high-school diploma from Saint Patrick's High School and proceeded to Government College now GCU In Lahore where he passed his inter-level and ascended to attend the Gordon College of Rawalpindi, Punjab province in 1965. Aziz obtained a BS Aziz acquired permanent residence status, whilst continuing to upgrade his legal status. Aziz played a pivotal role in expanding Citibank branches and corporate directive operations throughout the country and was instrumental in bringing multinational banking industries into Pakistan in the 1990s.

At Citibank, Aziz served as the corporate director of Asia Pacific global finance operations and had been notable for financing and managing funds on behalf of Citibank and other financial corporations in global stock markets. Aziz regarded his career in Citigroup as "extremely helpful" in preparing him for the executive public office, in 2006.

right|250px|thumb|Aziz engaging in discussions with American officials.

Aziz continued to visit Pakistan, working to expand Citibank's financial services and banking, overseeing the wide expansion of Citigroup's branches and its influence in Pakistan. Shortly, General Pervez Musharraf arrived for a small personal trip to the United States after staging a coup d'état to deposed the people-elected prime minister Navaz Sharif on 12 October 1999. After a brief session, Musharraf asked Shaukat Aziz to stand up and introduce himself to the audience. During his first days, Aziz worked to control the economy in a difficult and hostile environment with then-President Muhammad Rafiq Tarar who called him "an alien", and many among those who were close to deposed prime minister Nawaz Sharif and Benazir Bhutto. Other politicians including Fazal-ur-Rehman and Ameen Faheem became hostile towards Aziz and his policies; and harboured grave doubts about him because Aziz was not like a traditional politician in the country, an accredited politician. There was a ~70% decline in the national economy with the loss of $150 million (1999) to $600 million (2000), which constituted 0.21% of foreign direct investment (FDI) global flow. He closely worked with US Secretary of the Treasury on the detail of the devised plan on how to remove the Taliban from Afghanistan, cancellation and debt relief, loans from the World Bank, and direct support from U.S. Aid for national public development. The World Bank further reiterated that Pakistan's economic growth bolstered international confidence.

Assassination attempt

While campaigning on 30 July 2004, Aziz survived an assassination attempt in the Attock District of Punjab, Pakistan. The suicide bomb attack was staged in Fateh Jang, a small town to the north of the capital, Islamabad, where Aziz was contesting an election.

Aziz called the incident "tragic", and said it had claimed the lives of innocent people. He added that it had reinforced his resolve to serve Pakistan and the Islamic world. After safely reaching Islamabad, Aziz instigated a probe, while the foreign office contacted its mission in Egypt to try to determine the veracity of an Al Qaeda claim of responsibility. Ten suspected Al-Qaeda perpetrators were arrested in Egypt and later extradited to Pakistan for the crime. The strong oligarch business class of Pakistan, notably Chaudhry Shujaat Hussain, had been impressed by Shaukat Aziz's performance as finance minister.

However, Aziz was not a member of the National Assembly, although he was a Senator.

thumb|right|250px|Shaukat Aziz at the White House with US president George W. Bush, 24 January 2006.

Having been described and labelled as an urban gentlemen and smartly dressed, Aziz was tasked with day-to-day running of the federal government and see that policies were more effectively executed while Musharraf handled the military issues. while Aziz fulfilled the constitutional requirement of securing a seat in the lower house of parliament. Aziz ran from two constituencies, Tharparkar-I in Sindh, and Attock District. Even after the assassination attempt, Aziz continued campaigning and won from both constituencies. Since he could retain only one seat, he immediately vacated his Tharparkar seat, preferring to represent Attock, where he had won by 76,156 votes to 29,497.

Domestic reforms

right|200px|thumb|Secretary of Defense Donald H. Rumsfeld (right) greets Prime Minister Shaukat Aziz at the Pentagon.

Aziz successfully oversaw the rapid development of the local government system in Pakistan as part of his "Strengthening Decentralisation" program. His domestic initiatives including the decentralisation in the country, and termed the local government system as "more transparent and accountable". Aziz strengthened the policy formats and area of responsibility of National Reconstruction Bureau (NRB) after appointing Daniyal Aziz in 2005.

As prime minister, Aziz took hard stance against rivals and took a hardline against his political challengers. Aziz thrashed the Alliance for Restoration of Democracy (ARD) led by conservative leader Javed Hashmi who was placed in military prison on treason charges, on a support provided by Aziz. Subsequently, Aziz supervised and presided the first free and fair local body elections with PML(Q) and its allied parties sweeping the election arena. Controversially, Aziz allocated Rs. 20 million to each district where PML(Q) candidates lost the National Assembly elections in order to secure its voting bank that was lost in 2002. In Sindh and Balochistan Province, Aziz presided the peaceful election held events and personally monitored the success of the local government body programme. Under his first few of years of government, the law and order situation remains under control and prosperity in Balochistan, and presided the completion the first phase of the Gwadar port.

Problems began to mount with nationalist Akbar Bugti, an ally of Nawaz Sharif.

In Islamabad alone, Aziz's government was forced to take military action, codenamed Operation Sunrise (formerly Operation Silence) after chairing a meeting with the President. In 2009, Aziz maintained that his government had tried at every level of extreme to resolve the Lal Masjid issue through talks to save lives. On a television speech, Aziz paid a huge tribute to Abdul Qadeer Khan and while commenting on last part of his speech, Aziz stressed it:

Energy policy

thumb|right|250px|Shaukat Aziz at the [[World Economic Forum, 2008]]

After assuming the office, Aziz announced a controversial "New 25-year energy plan", aiming to raise Pakistan's dependence on imported oil for power generation to 50% by 2030. His government pushed for the renewable energy, and put efforts to establish the solar energy and wind power sector in the country.

Prime Minister Aziz's "New 25-year energy plan" remains extremely controversial and met great public criticism by media and energy experts. A 325 MW commercial nuclear power plant was built with Chinese assistance at the close vicinity of Chashma nuclear power complex. Aziz termed this project as "milestone" in the history of nuclear technology in Pakistan. Aziz oversaw to increase the capacity building of the Pakistan Nuclear Regulatory Authority, a governmental nuclear safety authority, to meet the safety requirement of nuclear power plants.

In 2007, Aziz further diversified his nuclear energy policy, terming it as "criteria based nuclear technology" while continued financing the nuclear power projects. Aziz presided initial construction of major hydroelectric power plants project in Pakistan, such as approving the Diamer-Bhasha Dam. Its foundation was laid by his successor Yousaf Raza Gillani in 2011. In 2004, Aziz directed the Ministry of Water and Power and Planning Commission to prepare an integrated energy plan for the country. Aziz approved the "Vision 2025" programme" of Water and Power Development Authority (WAPDA) to produce power through water. The programme was intended to be launched with the help of private sector and private funding through the international megaproject. In 2007, Aziz stressed that "Pakistan is not an offensive country and our defence doctrine is based on having minimum credible deterrence to maintain peace and stability in the region.". Aziz also successfully saw the technology transfer and contract development of first combatant frigate, the F-22P Zulfiquar. In May 2006, Aziz stressed that: "Pakistan's deep military and economic cooperation with China was one not based on "transient interest", but was "higher than Himalayas, deeper than oceans". In a joint statement of Prime Minister Shaukat Aziz and Chinese Premier Wen Jiabao, Aziz emphasised that: "both countries are determined to elevate their friendship and strategic partnership.". After witnessing the test, Aziz maintained that: "We will continue to pursue vigorously our security and energy needs from all sources including nuclear.". On 8 August 2005, Aziz issued directives to tightened the security and control and command of the National Command Authority and ordered strict monitoring of atomic assets and facilities at all levels of command.

From 2005 and onwards, Aziz's government took major steps against atomic proliferation

Foreign relations

On foreign fronts, Aziz closely collaborated with Musharraf while working to develop the geostrategy in the region. Aziz took initiatives to strengthen the relations with the United States, European Union, Russia, India, China, and Saudi Arabia. Under his government, relations with the United States were extremely cordial and friendly. His foreign policy strictly pursued and followed a "Balance Foreign Policy (BFP)" programme with an initial goal to keen to forge robust friendly ties with international community, US and European Union (EU).

thumb|right|250px|Shaukat Aziz with [[Condoleezza Rice, 2006]]

Accompanied by Recep Tayyip Erdoğan of Turkey, Aziz travelled to Iran in 2006, and privately told Iranian President Mahmoud Ahmadinejad he must change course regarding its nuclear program, as the current direction was neither in Iran's nor the region's interest. Aziz urged Ahmadinejad to immediately place a moratorium on uranium enrichment, while on the other hand Erdoğan described the EU-3 proposal, with Russian enhancements, as a very attractive offer for Iran.

Aziz paid a farewell visit to South Korea to strengthen and enhance relations between the two countries. Aziz cautiously supported South Korea's stance while refraining to criticise North Korea. During his tenure, relations with the United States strengthened and progressed. In 2006, Aziz quoted: "Pakistan-American relations are based on mutual trust and respect and are long-standing."

Relations with Israel were considered important by Aziz's government, and supported Musharraf's policy on Israel. At foreign fronts, Aziz maintained a "Telephone Policy" on diplomatic engagement with Israel, whilst keeping Saudi Arabia and Turkey in tacit contact. During his tenure, bilateral relations with the United Kingdom were enhanced and reached to a new level after meeting with British prime minister Tony Blair in 2005, and tightened the economic and defence relations with British counterpart Gordon Brown in 2007. Brown thanked Aziz for the successful launching of a $500 million Eurobond, which was oversubscribed four times. After assuming the office of prime minister, Aziz left for China, as his foreign state visit as prime minister in 2004. In 2007, Aziz made his final state visit as prime minister to China to sign a Free Trade Agreement with China, and regarded the country as a "strategic partner" Aziz built closer economic ties with India while alleviating the territorial conflicts. After meeting with Indian counterpart Manmohan Singh, a confident measuring building process was initiated by Aziz.

Aziz pushed his foreign policy to Russia, In 2006, Aziz invited state-run and private-media of Russia where he repeatedly stressed for the need to enhance cooperation between Pakistan and Russia in the fields of education, science and technology, energy, defence and trade and investment. Finally, in 2007, Russian prime minister Mikhail Fradkov paid a three-day-long visit to Pakistan, becoming the first Russian prime minister and leader to visit the country in 38 years. During this trip, Aziz and Fradkov pledged to boost economic ties and signed two co-operation agreements .

Economic policy

thumb|right|260px|Pakistan's GDP growth rate from the period of nationalisation in the 1970s until the economic boom in 2004–08

During his tenure, Aziz aggressively promoted the privatisation, deregulation and economic liberalisation programme and open the large heavy mechanical industries, petroleum companies, electropetroleum and chemical enterprises and state-owned corporations to private sectors. His tenure as finance minister and prime minister, the agriculture production and construction well increased, whilst aggressively and forcefully implementing his policies to liberalise the trade, and eliminated the non-tariff barriers. However, Aziz's strategy failed deal with underlying problems deeply in country's economy.

Privitization

An unsuccessful attempt to privatise the Pakistan Steel Mills was also thwarted by trade unions and pro-nationalization elements who took the case to Supreme Court of Pakistan in 2006. But Aziz said that his privatisation program produced "the second fastest growing economy in the world."

Public image

A banker and financier by training and extensive experience in the United States, Aziz's credentials are extremely high and considered one of the successful finance ministers of Pakistan. and The Blackstone Group. According to Aziz, he has maintained good relations with several members of his government and the members of the Parliament including his former foreign minister Khurshid Kasuri and the former railways minister Sheikh Rasheed and his party president Chaudhry Shujaat Hussain. Aziz remained active in political arena of the country and has vigorously defended his financial policies. Aziz criticised the care-taker government of Muhammad Mian Soomro for the economic collapse, and predicted that, "the next elections will sweep, paving the way for a two-party system to emerge with the Pakistan Muslim League in the government and the Peoples Party in the opposition".

He remains active on economic issues and harshly criticised the International Monetary Fund (IMF) for failing to show leadership during the 2008 financial crisis. While attending the international business conference at Philippines, Aziz maintained that: "This global institution (IMF) which is supposed to look at everything going on was not even in the room where meetings are going on". Aziz maintained that he was informed of "unfortunate event" through the televised media. The leaks claimed that he was linked with the Antarctic Trust, which was set up by Aziz himself. This trust was neither declared by him as prime minister nor as finance minister. Aziz, a former Citibank executive, told the ICIJ he had set the trust up for estate planning purposes and that the funds had come from his employment at Citibank. An internal Appleby document raised concerns about warrants issued for him in connection with the killing of a local leader. Aziz dismissed both the murder charge and the allegations of financial impropriety.

Bibliography

  • Aziz, Shaukat (2016). From Banking to the Thorny World of Politics

See also

  • List of prime ministers of Pakistan
  • Government of Shaukat Aziz
  • Privatization in Pakistan
  • Market corporatisation
  • 2008 Pakistani parliamentary election

Notes

References

  • Profile by the BBC, dated 30 July 2004

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