Identifier
Created
Classification
Origin
08ISLAMABAD2525
2008-07-25 13:48:00
CONFIDENTIAL
Embassy Islamabad
Cable title:  

CABINET EXPANSION POSTPONED; BUREAUCRACY SHAKEUPS CONTINUE

Tags:  PGOV PK PREL 
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FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8044
INFO RUEHBUL/AMEMBASSY KABUL PRIORITY 8926
RUEHLO/AMEMBASSY LONDON PRIORITY 8370
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 3572
RUEHKP/AMCONSUL KARACHI PRIORITY 0088
RUEHLH/AMCONSUL LAHORE PRIORITY 5832
RUEHPW/AMCONSUL PESHAWAR PRIORITY 4611
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 002525 

SIPDIS

E.O. 12958: DECL: 07/25/2018
TAGS: PGOV, PK, PREL
SUBJECT: CABINET EXPANSION POSTPONED; BUREAUCRACY SHAKEUPS
CONTINUE

REF: A. ISLAMABAD 2353
B. ISLAMABAD 1831

Classified By: A/DCM Candace Putnam for reasons 1.4 (b),(d)

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 002525



SIPDIS



E.O. 12958: DECL: 07/25/2018

TAGS: PGOV, PK, PREL

SUBJECT: CABINET EXPANSION POSTPONED; BUREAUCRACY SHAKEUPS

CONTINUE



REF: A. ISLAMABAD 2353

B. ISLAMABAD 1831



Classified By: A/DCM Candace Putnam for reasons 1.4 (b),(d)



1. (C) Summary: The long-awaited expansion of Pakistan's

federal cabinet has been postponed until after coalition

leader Asif Zardari and Nawaz Sharif can meet, likely in the

next two weeks. Zardari planned the expansion to assuage

complaints that he has not handed out enough jobs to Pakistan

People's Party (PPP) loyalists. He was not planning to

replace the Pakistan Muslim League-Nawaz (PML-N) ministers

who withdrew from the cabinet on May 12, but to name State

(Deputy) Ministers who could provide some degree of

governance until the PPP/PML-N gridlock is settled. The GOP

also sacked fourteen cabinet secretaries, many of whom were

considered competent bureaucrats. This decision is likely to

further undermine effective GOP governance. End Summary.



The Cabinet

- - - - - -



2. (SBU) The long-awaited expansion of the federal cabinet

appears to have been postponed "at least until the first week

of August," according to Pakistan People's Party (PPP)

sources quoted in the local media. This distribution of

government largesse had been much rumored since Prime

Minister Yousuf Gilani reportedly returned with a list of

names and appointments from his July 9 Dubai meeting with PPP

leader Asif Zardari.



3. (C) According to PPP contacts, Zardari has decided to use

the cabinet expansion to address discontented PPP factions.

He also still hopes to woo the Pakistan Muslim League-Nawaz

(PML-N) back to its assigned ministries, intending to appoint

many state ministers (similar to our deputy secretaries) in

the interim. (Note: PML-N leader Nawaz Sharif had pulled his

federal ministers from the PPP-led cabinet on May 12, so the

already-appointed PPP ministers have been covering double

portfolios.)



4. (C) Meeting PolOffs July 23, PML-N Spokesman Siddique ul

Farooq revealed a PPP Zardari/PML-N Sharif meeting was in the

offing sometime in the next two weeks. Farooq further warned

that, if the PML-N did not get satisfaction on the issues of
/>
restoration of the pre-November 3 judiciary or impeachment of

President Pervez Musharraf, the coalition could be in

jeopardy. Postponement of the cabinet expansion now appears

timed after such a meeting's outcome.



Other Shake-ups

- - - - - - - -



5. (C) The PPP has not hesitated to switch out other key

non-cabinet posts. Fourteen ministry secretaries (the

highest level civil servant within a ministry) have been

removed, in one form or another, from their positions. These

were often highly competent, well-placed technocrats.



6. (C) For example, Petroleum Ministry Secretary Farrukh

Qayyum was this week placed on "special home duty," without

an onward assignment. Officially, the GOP removed Qayyum

because of a ministry "mathematical error," involving the

significant increase in the price of natural gas several

weeks ago. Petroleum Ministry Additional Secretary G.N.

Sabari has been named Acting Secretary in the interim.

Sources confided to EconOff July 24 that Qayyum had been

removed because he allegedly refused to implement natural gas

surcharge to benefit coalition leaders who own numerous CNG

stations across the country.



7. (C) Additionally, Federal Board of Revenue (FBR) Chairman

M. Abdullah Yusuf was removed July 23, replaced by Ahmad

Waqar, former Secretary of the Investment Division. As a key

player in past economic reform measures, Yusuf was reportedly

viewed as too close to Musharraf. He also reportedly

strongly objected to GOP plans to remove high-level

consultants placed throughout the ministries.



8. (C) Religious Affairs Ministry Secretary Vakil Ahmed Khan

was removed July 16. Khan had been instrumental, where other

GOP agencies had failed, in getting the leadership of an



ISLAMABAD 00002525 002 OF 002





umbrella madrassah organization, to register its madrassahs

during the Musharraf government. As Religious Affairs

Secretary, Khan also had the authority to grant permits to

Hajj tour operators. Reportedly, Khan refused to increase

the number of tour operators for Hajj this year or to charge

a new USD 15 fee for each Haji, as the PM's Advisor on

Religious Affairs had wanted.



9. (C) Comment: Pakistan's federal ministers, just months in

office, are spread thin, covering multiple portfolios. While

the need to expand the cabinet is recognition on Zardari's

part that this situation in unsustainable, the delay, now for

two more weeks, is unhelpful in the face of rising security

and economic concerns. Meanwhile, however, rumors are

increasing of PPP members pushing through changes in other

non-cabinet posts for reasons of personal gain. End comment.



PATTERSON

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