- And diplomatic norms
Imran Khan’s success in breaking the ice with the Emiratis should be appreciated. Though our two countries have traditionally enjoyed very close ties, things had turned somewhat cold in the previous PML-N government, beginning with parliament’s refusal to commit troops to the Saudi-led war effort in Yemen. Now, though our financial desperation has clearly played a part, the Abu Dhabi Crown Prince’s visit, amid expectations of financial bailout, has certainly turned the equation around. Prime Minister Imran Khan himself received Sheikh Mohammed bin Zayed, and broke protocol by driving the dignitary himself to the PM House. Perhaps he should have extended similar courtesy to the Chinese foreign minister when he visited recently; only to be met by a protocol officer.
Oddly, though, despite the fanfare there was precious little that came out in terms of details of the so-called bailout. Earlier, whereas the Emirati press remained mum on the matter, the local media reported of a deal, already reached, on the Saudi blueprint. That means $3b in balance of payments (BoP) support and another $3.2b in deferred oil payments. Yet, even though people were led to expect an announcement from the visiting crown prince, the guest left in a hurry without a word. And the press release that came from the PM House only mentioned the BoP support towards the end, which does not clarify matters to say the least.
No doubt Pakistan’s reserves position has improved with all the help that has come from friendly countries. Yet there might still be no way of avoiding an IMF program. However, as appreciated as all this help is, the government must make sure that the process is transparent. So far the UAE handout, though welcome and appreciated, is still not quite spelled out thoroughly for the market to digest. The sooner the government clarifies matters, therefore, the sooner the economy can find some sort of direction.