Minister takes over Pakistani finance portfolio

ISLAMABAD (Reuters) - Privatisation Minister Syed Naveed Qamar was given responsibility for Pakistan's Ministry of Finance on Thursday after the finance minister resigned as his party withdrew from the cabinet.

Previous finance minister Ishaq Dar is a member of Nawaz Sharif's party, which resigned from the cabinet on Monday in a dispute with its coalition partner over the reinstatement of judges dismissed by President Pervez Musharraf.

Prime Minister Yousaf Raza Gilani has declined to accept the resignations of Dar and eight other ministers from former prime minister Sharif's party in the hope the dispute can be resolved and they will take up their posts again.

With economic problems pressing and the annual budget due next month, Qamar will look after the finance portfolio, said a spokesman for the leader of the Pakistan People's Party of assassinated former prime minister Benazir Bhutto, the dominant party in the coalition government.

"We didn't replace Dar but asked Naveed Qamar to look after his ministry," said spokesman Farhatullah Babar.

Pakistan is facing economic problems with a weakening rupee, inflation touching a 30-year high in April and widening trade and fiscal deficits.

Ratings agency Standard & Poor's cut Pakistan's sovereign rating on Thursday, citing increasing pressure from the deficits and political turmoil.