Govt wakes up to grim reality

ISLAMABAD:

The government and its allies decided late on Tuesday to implement “tough decisions” to steer the country out of its current economic woes and ensure long-term sustainability, enabling the coalition to see through the remaining tenure of the government.

Multiple sources in the ruling Pakistan Muslim League-Nawaz (PML-N) as well as its coalition partners, told The Express Tribune that the decision was taken in a meeting held at the Prime Minister House.

The meeting was chaired by Prime Minister Shehbaz Sharif and attended by heads of the coalition partners. The sources said that they finally agreed that bold decisions, even if they were unpopular, should be taken forthwith to steer the country out of the current political and economic crisis.

“The government and its allies have decided to take tough economic decisions and complete the constitutional term,” confirmed a lawmaker from the ruling party on the condition of anonymity.

Also read: PM confers with allies on unsettling economic woes

When asked if the top-level huddle deliberated upon the Supreme Court’s ruling about the dissident lawmakers, the lawmaker said that lawyers would interpret its meaning and application. However, another PML-N lawmaker said that the issue was not discussed in the meeting.

Those present in the meeting were Prime Minister Shehbaz along with key PML-N leaders, former president and Pakistan Peoples Party (PPP) Co-Chairman Asif Zardari, Jamiat Ulema-e-Islam-Fazl (JUI-F) chief Fazlur Rehman and Muttahida Qaumi Movement-Pakistan (MQM-P) Convener Khalid Maqbool Siddiqui.

“We [coalition government] came to fix and stabilise the economy and the right thing to do is to give priority to the national interest over [our own] political gains,” the MQM-P convener told The Express Tribune.

“The allies have assured the ruling party of their support for taking tough economic decisions,” the MQM-P leader said, adding that the MQM-P would stand by the government in this regard.

However, on completing full term, Khalid Maqbool Siddiqui slightly differed from what the ruling party’s lawmakers had said. Siddiqui said that the MQM-P conveyed to the prime minister that new census should be held before the next elections and the polls should be held soon after the legislation pertaining to electoral reforms was done.

“The coalition partners have clearly said that they were with the government,” Siddiqui said, adding: “We have also suggested that a counter narrative should also be developed.”

The suggestion of developing counter narrative came against the backdrop of former prime minister Imran Khan tirade against the government in his public gatherings, labelling the incumbent rulers as “traitors”.

Siddiqui said that it was discussed that a country like Pakistan couldn’t afford blanket subsidies. “MQM-P proposed that the concept of blanket subsidies should be eliminated and only targeted subsidies should be given to the farmers, labourers etc.”

He said that MQM-P was against the indirect taxation and fully supported direct taxes.

About measures to control inflation, Siddiqui said it was decided that a price controlling mechanism should be developed and strict action must be taken against hoarders. The meeting noted that the previous ruling party did not show any seriousness in this regard.

For days, the government has been mulling over measures to control inflation, continue or end subsidy on oil, which the IMF had linked to the revival of its loan programme, and decide about the timeframe for the next elections. However, the delay in adopting a clear-cut government policy took its toll on the national economy.

After Tuesday’s meeting, it is now clear that the government had the full support of its coalition partners and that it would go ahead with some bold decisions to stabilise the economy regardless of the political cost those decisions would entail.

Amid political volatility and a worsening economic situation, Prime Minister Shehbaz began consultations with the allies on Monday, discussing with them the tough measures agreed upon during a top-level huddle of the PML-N in London.

Last week, Shehbaz led a 10-member ministerial delegation to London to discuss the multiple challenges facing the government, including fuel prices, the anti-government campaign of former prime minister Imran and the revival of the International Monetary Fund (IMF) package, with party Quaid Nawaz Sharif.

Later, several ministers had said that a plan had been finalised in London, but the government would consult its allies before announcing it. Information Minister Marryum Aurangzeb said on Saturday that after taking the allies into confidence, Shehbaz would address the nation.

On his return from London on Monday, Shehbaz met with Zardari, Fazl, and Siddiqui. He called them again on Tuesday night after the issues were discussed in the federal cabinet meeting.

Now that the consultations have been completed and the coalition government has made up its mind to take some tough decisions to fix the economy, only a formal announcement through the prime minister’s address to the nation is awaited.