THE Gilani government has reshuffled its finance team yet again. There is much speculation about the reasons that could have driven Mr Salman Siddique out of the finance division and brought Dr Waqar Masud back in his place for a third term as secretary of finance. Could it be that Mr Siddique, who worked as the finance secretary for 22 months, did not get on with his minister Dr Abdul Hafeez Shaikh? This is not impossible. But as revenue secretary and Federal Board of Revenue chairman, Mr Siddique would still be reporting to Dr Shaikh. What pleasures can the minister draw from uprooting an 'unwanted' man from one post and giving him another assignment under himself? One report suggests that Mr Siddique's inability to forge an inter-provincial accord on the reformed general sales tax on services might have escalated into his transfer. Again, this explanation is not without reason; the Sindh government did not appear to trust him after what it called “deliberate” errors in the gazette notification of the National Finance Commission award.

In the wake of its failure to keep its international commitments, however, the move must be seen in the backdrop of the government's deteriorating credibility with global lenders. Desperation to save the loan agreement with the International Monetary Fund appears to be the most significant driver behind the latest reshuffle in the finance team. By bringing in Dr Masud, who in his previous stint as finance secretary played an important role in striking the deal with the IMF in November 2008, the government may be hoping to buy some time to salvage both its domestic standing and the loan. No doubt, individuals matter, but it is the actions of the government that determine the latter's credibility. Unfortunately, the one currently in power has been unable to improve its ratings, at home or abroad. The future of the government, and that of the Pakistani economy, is to a large extent dependent on the ability to develop a broader political consensus on tax and financial reforms and actual implementation of taxes like the RGST. It doesn't have much time even if it has the will.