[14] Dar began his political career in the late 1980s as a member of the central executive committee of the Pakistan Muslim League (N) (PML(N)).

[15] According to a statement from Dar recorded by the National Accountability Bureau (NAB) when he was detained following the 1999 Pakistani coup d'état, he began a close association with the Sharif family in 1990, in the course of which he laundered "$14.68 million and opened two bank accounts under the names of Sikandar Masood Qazi and Talat Masood Qazi for Nawaz Sharif's brother".

[17][20][15] In 1996, the President, Farooq Leghari, dismissed the Prime Minister Benazir Bhutto and her government, and dissolved the National Assembly.

[20][15] Sharif's PML(N) again won a clear majority,[25] and Dar was Federal Minister for Industries and Investment in from February to July 1997.

[31][32][33] Dar was then appointed Minister for Finance,[17] and negotiated an International Monetary Fund (IMF) bailout package.

[38] On his release, Musharraf remained in power, and Dar moved to the United Arab Emirates,[9] where he worked as a financial adviser.

[15][41] After the formation of a coalition government between the PPP and PML(N) with Yousaf Raza Gillani as Prime Minister,[42] following the 2008 general election, which had resulted in a hung parliament where the PPP had secured the largest number of seats in the National Assembly and the PML(N) the second largest,[43][44] Dar due to his expertise in finance and economics,[11][15] was invited to join the cabinet of Yousaf Raza Gillani with the status of a federal minister in March 2008 and was re-appointed as the Minister for Finance[17][45][10][15][5] with the additional cabinet portfolio of revenue, economic affairs and statistics.

[49] During his brief tenure as finance minister, he was criticized for causing the rupee fall, bank run and panic in the market.

[50] Meanwhile, he has been credited for proposing the idea of the Benazir Income Support Programme,[51][52][53][54] a Pakistani government aid program to provide financial assistance to low-income families[55][56] which is said to be one of the largest in South Asia.

[57] Dar claimed that the original name of the organisation proposed was Pakistan Income Support Programme but that it was renamed by PPP for political gains after he stepped down form the ministerial office.

[41] A few days later he was elected as the Leader of the Opposition in the Senate, replacing Abdul Ghafoor Haideri[59][60] for his negotiation skills with PPP government on major issues.

[72] Pakistan Today reported that a source in the NAB alleged "immense pressure" to clear Dar, even though there was sufficient evidence to convict him.

[76] Sharif's successor, Shahid Khaqan Abbasi, reappointed him as Finance Minister despite the ruling,[77] but reduced his powers.

[83] In September 2017 a NAB court in Pakistan indicted Dar in the Panama Papers corruption case for having wealth beyond his known sources of income,[84][85] but, despite criticism from the opposition parties, he continued to serve as finance minister.

[86] It was reported that it was possible he would lose his ministerial portfolio due to the corruption case against him[90] on the grounds that he has become ineffective and unable to carry out the responsibilities of a Minister.

[98] Dar was credited with stabilising the economy after the 2013 balance of payments crisis locally and internationally,[99][100][101][102][103] but critics also alleged he had failed to implement structural reforms[71] and manipulated statistics.

[125] In August 2018, the NAB approved an inquiry into a graft case against Dar for illegally awarding a Next Generation Mobile Services contract and for committing alleged financial irregularities.

[128][129] The same month, a British parliamentary team rejected an online petition seeking the deportation of Dar on the ground that there is no extradition treaty between the two countries.

His tenure coincided with a challenging economic period, marked by high inflation and the need for International Monetary Fund assistance.

In January 2023, Dar sought US assistance in obtaining IMF funding in view of recent floods and adverse economic conditions.

[133][134] Imran Khan's administration had previously initiated negotiations with the IMF for a bailout program, but these talks stalled before his departure in April 2022.

During Dar's tenure, Pakistan experienced high inflation peaking at 37.97% and significant interest rate hikes reaching 21%.

Dar's approach involved advocating for market intervention to stabilize the Pakistani rupee, a strategy that reportedly differed from the IMF's recommendations.

Despite delays, Dar negotiated a deal with the IMF, with Prime Minister Shehbaz Sharif playing a pivotal role in finalizing the agreement.

[138] Bilateral trade between the two countries has been on hold since August 2019, due to tensions sparked by India's move to revoke Kashmir's special status.

Dar conveyed his concerns about terrorist hideouts in neighboring Afghanistan to the country's Interim Foreign Minister, Amir Khan Muttaqi, following the North Waziristan terror attack on the Pakistan Army,[139] resulting in the deaths of seven security force members.

He expressed disappointment at the perceived lack of substantial action from Afghanistan in addressing terrorist groups operating from its territory.

[142] The Express Tribune noted that Malik had been "ocal in his criticism of sugar millers for violating the export conditions imposed by the government.

[144] Ishaq Dar served as finance minister of Pakistan across four terms, implementing economic policies known as Daronomics.

[152] His 2013–2017 tenure focused on stabilizing the exchange rate by injecting dollars into the market, which ultimately worsened the current account deficit and contributed to Pakistan's 2019 IMF bailout.