The press in Pakistan are reporting that the governor of the country’s central bank, Shahid Kardar, has resigned.
It was unclear exactly when or why Kardar, the governor of the State Bank of Pakistan, resigned, but some reports indicate that he had differences with the government on key policy issues.
Pakistan is in a fiscal crisis, with mounting debt and economic woes. It will be interesting to see how the financial community there deals with these problems. Pakistan has undergone a generation of Islamization which has been a disaster for the country economically and demographically. The poverty rate in Pakistan now is far greater than it was before General Zia al Huq announced the Islamization program in the late 1970s.
Nevertheless, if the financial jihadists remain true to form, they will blame Pakistan’s financial woes on the financial system not being Islamic enough and will champion shariah compliance as the solution to all the problems. They will claim that shariah compliance provides insulation against the economic cycle, which of course is complete and total hogwash.