PTI wants IMF-backed next budget

ISLAMABAD: PTI seriously apprehends that the PDM may do precisely the same to the economy during the end of its tenure what it had done shortly before the ouster of Imran Khan government in March 2022.

As the two sides — PDM and PTI — finally enter into a political dialogue to decide the date of general elections, the PTI’s real concern is what kind of budget for the next fiscal year will be presented by the PDM if the National Assembly is not dissolved early.

PTI leader Hammad Azhar in a tweet on Friday said, “The budget for next fiscal year must be devised sensibly and in consultation with the multilaterals.”

He tweeted, “It is imperative that Finance Minister Ishaq Dar stops playing games with the economy. He has already inflicted massive damage. The budget for next fiscal year must be devised sensibly and in consultation with the multilaterals.”

The tweet shows that the PTI, which is expecting to form its government after the next general elections, wants the next budget to be strictly in line with the recommendations of IMF.

Another senior PTI leader is also quoted by a section of the media as having said, “The real issue is the upcoming annual budget. We want the budget to be presented by a caretaker government or a new government as the present rulers want to present a political budget for the next year which will be disastrous for the country.”

“Even the IMF is also waiting for the next budget. If the government introduces a political budget, then the IMF will not give us loan,” apprehends the PTI leader, adding that the PTI has asked the government to share its plan as to how it wants to run the country.

A few weeks before the no-confidence motion against Imran Khan, the PTI government, in a glaring violation of the IMF agreement that it had signed in 2019, had reduced the oil prices by offering a huge subsidy. The PTI government had agreed with the IMF to impose levy on petrol and diesel but it did exactly the opposite to win the support of people a few weeks before the removal of the government through a no-confidence motion.

Prime Minister Imran Khan had announced a cut in fuel and electricity prices despite a steep global rise in the cost of oil, pledging to freeze the new rates for four months with the price differential being covered by the government.

At that time, Pakistan was required to undertake fiscal tightening measures to pass its IMF review, which was delayed by months as the government had struggled to complete prior actions required by the lender to release $1 billion in February 2022.

The IK government’s relief package, which surprised many given the global oil prices and Pakistan’s economic conditions, was announced as opposition parties got ready a no-confidence motion to push Khan out of office.

While independent economists were shocked and the IMF got greatly upset, the PDM, which later removed Imran Khan and form its government, had said the IK government had laid “landmines” to destroy the country’s economy to serve vested political interest.

In view of what the PTI did to the PDM, the former’s concern is seen as valid because if the PDM gives a popular election budget, it would mean more problems with the IMF and political consequences will be faced by the next government.