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Friday March 29, 2024

A matter of style

By M Saeed Khalid
October 06, 2018

Starting from July 25, the day Imran Khan emerged victorious in the general election, and particularly since his swearing-in as the country’s premier on August 18, we are learning much about his style of governance.

The hallmark of his leadership is the reduction of state expenses as seen in actions taken by the PTI governments in Islamabad, Peshawar and Lahore. PM Khan has adopted an austere lifestyle, which again is praiseworthy. We have heard of major reductions in development projects including some under the CPEC, which have not yet commenced.

But where is the prime minister spending his time while at the helm of affairs? In meetings all over the place, ranging from the PM Office and House, to the cabinet and its committees, and sometimes in the National Assembly. Often at his personal residence in Bani Gala and occasionally in the provincial capitals. He has received extensive briefings at the Foreign Office, the GHQ and the ISI. He is always in huddles and not seen in public. This is much more like a technocrat head of government rather than a political leader who has reached the pinnacle after 22years of relentless struggle.

The prime minister is yet to be seen in a constituency, a school, a hospital, on a development site or on a playground. Or anywhere with the people or his party workers. This may seem extraordinary because even a banker elevated to the office of prime minister was concerned about making appearances outside meeting rooms. Something is obviously amiss here. We hope that PM Khan will move out of his comfort zone and start doing things political leaders are known for doing all over the world – being seen with people from all walks of life in different parts of the country.

The prime minister may need to reach out to businessmen and industrialists at a time when his finance minister is warning about a bypass surgery on the economy. It is becoming clear that the country is heading for a period of austerity and lower economic growth. Alarm bells reminding us that the state and state-owned entities have been spending too much and earning too little. The economy is in a zone of turbulence and requires a tightening of the belt.

There are indications that life will not be like it was before. Figures show that Pakistan is facing a shortfall of $28 billion this year, including external deficit of $10 billion. Economic wizards say that urgent financing is needed from the IMF and other sources to plug the gap. Some of them feel that the government is unduly delaying recourse to the IMF. But the official reticence is understandable. The IMF has its criteria and charter of demands for borrowers.

It is about time the prime minister and his team members started explaining to the people that further massive borrowing is inescapable to avoid a default on the country’s foreign debt payments. Even if a part of that borrowing comes from the lender of choice – the IMF – that would require cutting down subsidies, enhancing utility rates, reducing state expenditure including development projects, higher interest rate and lower economic growth rate.

The sad reality is that we have been down this schema many times before, particularly in 1998 and 2001 – and more recently in 2013. No lessons were learnt and the result is the mountain of internal and external debt we now face. The prevailing situation requires better tax collection at home and devaluation of the rupee to bring down the rising imports. Further devaluation of the rupee will help exports and, combined with greater prices of imported goods, the balance of payments should improve. But one may ask: wouldn’t fewer imports reduce the revenue from customs duties, and encourage smuggling?.

There are no easy solutions. The PTI government will face problems in fulfilling its campaign promises of building five million homes and creating 10 million jobs in a situation where financial discipline may become the order of the day.

PM Khan has shown a lack of enthusiasm in travelling abroad as he opted not to attend the UN General Assembly session in New York, thereby missing an opportunity to reach out to the international community. His only visit abroad so far was to Saudi Arabia and the next travel is likely to be to China. Both countries are Pakistan’s strategic allies and meetings with their top leadership are highly beneficial to our core interests.

Several other important partners have extended invitations to Imran Khan to visit their countries and it would be desirable draw a list of capitals to be visited over a period of 6 to 12 months. PM Khan may easily go slow on that front, but frankly no benefit would come from staying at home where the opposition will continue with its attempts to make the government look weak and vacillating.

It is true that our rulers have been prone to excessive travel abroad and relishing seven-star hospitality during those visits. There must be a happy medium where the prime minister pays a visit abroad every quarter and the president attends some summits and meetings.

In other words, just as it is expected of the prime minister to be seen with the people within the country, it is equally desirable for him to be seen acting as the country’s chief diplomat in important capitals of the world.

Email: saeed.saeedk@gmail.com