As the IMF prepares to make a final judgement on releasing much-needed funds to shore up Pakistan’s foreign exchange reserves, an unpleasant dispute has arisen about both Pakistan’s senior decision-makers’ desire and ability to deliver on commitments made to the international lender. On Friday, onlookers were dismayed to learn that KP Finance Minister Taimur Jhagra had’reneged’ on his promise to run a budget surplus this fiscal year, according to media sources.
The disagreement came from a letter addressed by Mr Jhagra to federal Finance Minister Miftah Ismail about KP’s concerns about overdue receivables and flood damage, which, Mr Jhagra claimed, would make ensuring a provincial surplus in the current fiscal year “close to impossible.” Whatever Mr Jhagra’s thoughts, it’s worth wondering why he felt the need to stir the boil so close to the IMF meeting. Nothing he mentioned felt extremely urgent and could have waited till later.
At the same time, Mr Ismail must accept responsibility for failing to maintain closer coordination with the provinces and enabling their frustrations to surface. Thankfully, the two have agreed to meet on Monday to discuss the matter. It is hoped that they will be able to discover solutions in a timely manner.
However, the erratic behaviour of political opponents is not the only threat to Mr Ismail’s economic goals. ‘Dissidents’ in his own party are already appearing with frightening frequency, publicly pointing their fingers at his efforts to secure a lifeline for the economy.
These ‘dissenters,’ Abid Sher Ali, Talal Chaudhry, and Hanif Abbasi, are all members of the PML-Nawaz N’s camp and supposedly have the party supremo’s approval to target Mr Ismail.
Their warnings, which have included the threat to join protests if Mr Ismail does not provide ‘immediate relief’ to the masses, are continuously weakening the beleaguered finance minister’s hand, as well as putting pressure on him to make unwise decisions in order to avoid exclusion from his own party.
If Mr. Jhagra’s letter is frustrating, it is equally shocking that a key faction within the PML-N appears unable to acknowledge that populist relief measures are out until the economy stabilises and returns to a more sustainable course.
So far, the PML-N has made several difficult economic decisions that have lost it a lot of support. With some of its senior members now desperately pressing for populist policies, the impression may be generated that the party lacks real desire to put the economy back on track, damaging its hard-fought fight to re-establish trust with the Fund.
The path to recovery is obvious to all, and there must be some appearance of unity among the country’s leaders when it comes to preserving the economy.
