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Money Matters

Game of plans

By Shabir Ahmed
Mon, 09, 18

Prime Minister Imran Khan is right in asking for a three month reprieve from the criticism brigade. But are we wrong in asking, at the end of one-third of this period, for a greater elaboration of how he plans to do all that he has promised?

Prime Minister Imran Khan is right in asking for a three month reprieve from the criticism brigade. But are we wrong in asking, at the end of one-third of this period, for a greater elaboration of how he plans to do all that he has promised?

In promising all that he has, he came as the answer to our prayers for a literate, healthy, corruption-free, prosperous Pakistan that all of us can be proud of. He has promised to do all this, and more, through sheer resolve and the magic of better governance.

We have no doubt he is serious about good governance. So was Musharraf and we chose not to read the early warning signs because our hopes were high and the rhetoric was comforting.

With our history of dreams gone sour shouldn’t we be ‘twice shy’ in lapping up all that is thrown at us and allow our minds to question what our heart wants to believe? Would we be in the breach of the three months’ ‘grace period’ if we forewarn Imran – to forearm him? After all, his avowals are in sync with our interests.

A lot has been said about the Atif Mian episode, and the governance message that comes out is not so much about liberals versus radicals; it is Imran Khan letting down his own information minister, who was allowed, perhaps asked, to defend the decision, which he did stoutly and skillfully.

What are we to make of the comments of prime minister’s adviser on commerce on China-Pakistan Economic Corridor (CPEC)? People in his position don’t give ‘personal’ opinions. Our take on the faux pas is that the Cabinet members have not been briefed on government’s stance on matters that impact our relations or negotiating positions; nor, it appears, ministers and advisers were reminded of the rules of business, the dos and don’ts, in the very first meeting of the Cabinet.

Perhaps the two most prominent examples of poor governance, both coming out of chief minister (CM) Punjab’s controversial door, are the transfer of Lahore district police officer (DPO) and initiation of disciplinary action against two deputy commissioners (DCs).

In the first, it is not just done to confront the police officer with a ‘stranger’, no matter how gracious the CM was in dishing out the eats. He should have just asked the inspector general of police for a report and then taken action as per law.

In the second case, the DCs are being charged with by-passing the chain of command, without a word about their complaint of political meddling being well-founded or not.

If there is substance in their complaint, action should have been taken against the meddlers, not the complainant. Contrariwise, if it was determined that they had wrongly accused the elected representatives then that should come before the lesser offence of not following procedure in reporting the incidents.

It is the timing of these cases that is particularly disturbing. It coincided with Imran vowing to protect the civil servants against political interference. How credible will be his promise to them?

The greater worry is the noise, and it can’t be described otherwise, coming out of Islamabad. The absence of a clear policy stance on such critical issues as fiscal and external account imbalances adds to uncertainty that is inimical to the economy, and gives rise to speculations, which is even worse. The ECC takes a decision in one meeting to reverse it in the next, making one wonder if proper ‘homework’ is being or has been done.

Of course, it will take time for the pieces to come together, but that does not mean that the finance minister should not come out with a policy statement, if nothing else to put an end to the growing speculations. We do not expect him to share state secrets or go into full details – he is right that he should present them to the parliament first – but it should not prevent him from giving the salient features of his game plan, if he has one.

Or, he doesn’t have a game plan?

Okay, if not International Monetary Fund (IMF) then what? China and Saudi Arabia? What’s the quid pro quo there? Can the generosities of our two friends be packaged together, or you can have only one or the other? How can Hamid Mir, who is not in the business of ‘inventing’ stories, be so sure of $10 billion from Kingdom of Saudi Arabia? Surely it is not government strategy to float balloons to reassure the public - or gauge their reactions?

If the information minister can be authorised to confirm that the government is not going to reverse former finance manager Miftah Ismail’s tax incentive largesse then why can’t the government tell us what their plans are to bridge the fiscal gap, which appears to the uninitiated to be quite staggering – something like Rs2.5 trillion? It is likely to widen further if Khan is serious about a welfare state and fiscally empowered local governments (which will be his most abiding legacy if he can swing it). And then there is the dam, whose financing plan seems to be driven by the Persian saying ‘drop by drop maketh a river’.

The gaping fiscal hole can hardly be plugged through austerity and sale of buffaloes. While it is populist to convert PM/governor houses into universities, museums, and parks – even if the government’s authority to do so in the absence of an enabling legislation is highly questionable – alternative accommodations and maintenance of university/museums/parks is going to cost money.

Did the PM inadvertently let the cat out of the bag by asking the civil servants to wait two years for the state’s finances to get in shape?

On the external side every day counts. Between now and November repayments of $2.5 billion are due. Unless there are sizable inflows –coming in as early as today– State Bank of Pakistan will start pushing the panic buttons leading to rupee revaluation and higher interest rates.

This will usher in even higher inflation that will hurt the poor more than, say, increasing the prices of utilities.

There is no more leverage left in blaming the previous government. That has been paid for in voting you in. Now we have to get on with the endgame -delivering on the promises.

Despite our growing discomfort, Kaptaan looks supremely confident. Obviously, he knows something that we don’t. But if he has a game plan it is shrouded in mystery –the best kept secret in town. Until he allows us a sneak peek we will keep peeling our own onions, layer by layer.

The write is a freelance columnist