IMF again
There are many mysteries in the arcane world of our
government’s financial management. Two months ago we walked away from the IMF
because we were unable or unwilling to put in place the reforms we were
committed to as a condition of the release of a very large sum of IMF money.
Today, it appears that we are back in the IMF hospitality suite seeking a
‘clean chit’ – and to add another twist it would seem we are there more at the
behest of multilateral donors and the G-7 representatives in Islamabad than any
urgent desire on our own part. The World Bank and the Asian Development Bank
are keen that Pakistan enter the next IMF programme, but the government
financial wizards are not rushing to sign up for a set of reforms that are
going to go down like a lead balloon with an electorate itching to cast their
votes in the next eighteen months.
That we were going to find ourselves again at the doors of the IMF was almost inevitable. Somehow the slate has to be wiped clean if we are to benefit from any future IMF support, and the IMF is seeking guarantees from the political leadership that there was not to be a repeat performance wherein the government promised the moon and delivered a very small wheelbarrow of rocks instead. Seeking to smooth the path, there has been a seminar at the Prime Minister’s Secretariat which has sought to allay the assorted fears of the ADB, WB and IMF itself. Our leaders are, they averred, willing to make the essential reforms on the fiscal side, mobilise revenues (read ‘taxes’) curtail expenditures (highly unlikely) and wrestle to the ground the monster of circular debt in the power sector (even more unlikely). The time-honoured strategy of lying when cornered is clearly in play. This government is no more inclined to fiscal reform that it was three months ago. Unsustainable power sector subsidies and IMF insistence on curtailing the budget deficit on the lower end are going to make a ‘clean chit’ difficult to obtain. And the ballot box sits quietly in the corner, saying nothing.
That we were going to find ourselves again at the doors of the IMF was almost inevitable. Somehow the slate has to be wiped clean if we are to benefit from any future IMF support, and the IMF is seeking guarantees from the political leadership that there was not to be a repeat performance wherein the government promised the moon and delivered a very small wheelbarrow of rocks instead. Seeking to smooth the path, there has been a seminar at the Prime Minister’s Secretariat which has sought to allay the assorted fears of the ADB, WB and IMF itself. Our leaders are, they averred, willing to make the essential reforms on the fiscal side, mobilise revenues (read ‘taxes’) curtail expenditures (highly unlikely) and wrestle to the ground the monster of circular debt in the power sector (even more unlikely). The time-honoured strategy of lying when cornered is clearly in play. This government is no more inclined to fiscal reform that it was three months ago. Unsustainable power sector subsidies and IMF insistence on curtailing the budget deficit on the lower end are going to make a ‘clean chit’ difficult to obtain. And the ballot box sits quietly in the corner, saying nothing.
Business News
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Memogate:
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President
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Nawaz
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PPP
has become 'Zardari league': Qureshi
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No
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Egypt
cabinet resigns
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Dr. Zulfiqar
Mirza hands more evidence to SYard
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