The IMF Bailout.

The commitment shown by the government to have the IMF programme revived, even though it involved taking some harsh decisions to fulfil the requirement of the lending agency, is commendable indeed. It surely had political costs because the people were hard hit by the hydra-headed inflation due to the rollout of energy subsidies, higher fuel prices and the pressure on rupees. The PDM government did what the ground realities dictated, from which there was no escape and had to be taken to stem the rot in the economy.

The PDM government deserves credit for its hard work to clinch the deal. It has certainly saved the country from a looming economic crisis. Though the IMF bailout is not big enough to fix all the maladies afflicting the economy, it will undoubtedly stabilise the economy by averting default on external obligations.

It is indeed regrettable to note that the PTI government had laid landmines for the incoming government by burdening the economy with unfunded energy subsidies which constituted a breach of the agreement with the IMF. The political instability fomented by PTI after its exit from power hurt the market sentiment and created the perception of a heightened political risk which badly affected the flow of direct foreign investment in the country. The uncertainty thus created, led to slowing down progress in negotiations with the IMF which surely looked for political ownership. But the PDM government managed to keep its head above the water. It was quite evident that PTI was looking forward to scuttling the deal with the IMF to create difficulties for the government and undermine its ability to weather the storm.

It did not rest at that and made a well-calculated effort at the last stages of the negotiations with the IMF to sabotage the conclusion of the bail-out package by the IMF. The revelations of the audio of conversation between former finance minister Shaukat Treen and finance ministers of KP and Punjab in which they are being asked to write letters to IMF conveying their inability to meet the commitments made with IMF is the ultimate act of jeopardising the national interest. Coming from a party which claims to be the largest political entity in the country, it is an inexcusable indiscretion. Political differences and enmities should not be taken to the extent of undermining national interests. The act is condemnable. I think the matter needs to be probed thoroughly if it is established that the party did indeed indulge...