ISLAMABAD. Aug 7: Pakistan's depressed economy is unlikely to be boosted by Prime Minister Nawas Sharifs decision to put a technocrat In charge of the country's finances, analysts said Friday, reports AP.

Sharif on Thursday shifted Sartaj Aziz from finance to foreign affairs, and named Hafiz Pasha, a respected economic scholar, as his special financial adviser. Pasha will have the duties of finance minister, but could not be named to the Cabinet because he Is not a member of parliament.

Pakistan would accept what are likely to be tough new loan terms from the international Monetary Fund. Pasha said. We will do whatever is necessary to revive the economy.” and stressed the Importance of the county's negotiations with the IMF later this month.

The government, hard pressed by anti-nuclear sanctions imposed by the United States. Japan and other industrial nations, could seek a moratorium on the payment of its 30 billion dollar foreign debt.

Analysts say the foremost concern for the country's economic managers remains that crushing debt and lack of foreign exchange.

Akbar Zaidi, an Independent economist, estimated Pakistan's current foreign exchange reserves at 750 million dollars including a recent 200 million dollar loan from Kuwait. That covers less then a month of imports such as fuel and wheat for

this country of 140 million people. Zaidi said. Pakistan spends 4.6 billion dollar a year lust servicing its debts, he added.

As his appointment was being announced. Pasha was headed to the Middle East, where he was reportedly negotiating a loan from the Islamic Development Bank and trying to get a break for Pakistan in oil prices. The main Karachi Stock Exchange closed more than 50 points higher at 972.96. with traders buoyed by news Pasha had gone hunting for cash.

Loans from the Middle East "will probably allow the government to stay afloat for another three-four months, but it will take away the pressure to reform." said Jahanzed Naseer, head of research at Jardine Fleming Pakistan, a brokerage house.

"Although he (Pasha) is a competent person and well-reputed. the changes which are

required are the ones that have already been proposed so many-tlmes. and shot down for political reasons" Naseer said. "All they need is implementation of the polices they have announced earlier. If they have the will. It really doesn't matter who’s manning the seat."

Analysts said Pakistan needs to speed up its privatisation programme and broaden the tax base. Aziz, Pasha's predecessor, had imposed a new sales tax. but protests by business forced the government to back down Friday.

Salman All. research head of the bank and brokerage house Indosuez WI Carr, said It takes a politically powerful minister to push through painful reforms. And Pasha is not a politician.

"A finance chief without a political base will not be able to assert himself." All said. "His policies will be always be amended."