- Vacillation will breed uncertainty and harm the economy
Imran Khan has said Pakistan may not need IMF, making thus an about turn on the issue. The matter had been debated in the highest government forums several times during the last two months. To avoid a recourse to the IMF and its bitter pill of conditionalities it was initially decided to approach friendly countries to seek a loan. Later the information minister divulged that the terms offered by these countries were not acceptable. On October 8, Finance Minister Asad Umar revealed that Imran Khan had given a go-ahead to open talks with the Fund for a bailout programme after consulting economic experts and stakeholders. Three days later the finance minister called on IMF chief Christine Lagarde at Bali to formally request for financial assistance. It was revealed that the government was ready to take difficult decisions that could be painful for people but were necessary to get out of the current severe economic situation.
With an IMF team due in Pakistan on November 7 to initiate discussions for a programme, Imran Khan is getting cold feet. He has again reverted to the position he had taken early this month. He has in fact talked in one breath about approaching friendly countries and fixing the economic crisis with the government’s own policies first. There is a need to decide the matter and take a firm decision at the earliest instead of continuing to vacillate on the issue.
One can understand that the opposition which thinks it is being continuously driven to the wall is likely to make an issue of the difficulties thus created. The only way out is to improve relations with the opposition which is being even denied the customary right to head the PAC. Continuing to dilly dally on vital economic decisions will have dangerous consequences. Pakistan has import cover for barely 1.6 months while the financing requirements are $18 billion for this financial year besides $8b of debt repayment in coming months. Unless there is an end to uncertainty and rumours the exchange rate will remain unstable and the stock exchange will continue to have frequent bleeding sessions.
