The coalition government has vowed to defeat PTI’s “conspiracy to sabotage” the International Monetary Fund programme in reaction to the letter of Taimur Jhagra, the Khyber Pakhtunkhwa finance minister, who wrote that latter that it would be “next to impossible” for the provincial government to leave a surplus.
“The KP government is indulged in politics and refused to implement the condition laid down in the agreement with the IMF as the country is bracing for a devastating situation caused by floods but at this difficult stage,” said a joint statement issued by allied parties on Friday.
The letter comes as the IMF’s executive board is scheduled to meet on Monday to make a decision on the release of more than $1 billion worth of tranche for Pakistan.
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Jhagra’s letter “was a ploy to drown” Pakistan in the flood of economic crisis, the coalition government said, adding that it was PTI chief Imran Khan who signed the agreement with IMF on “tough conditions”. It accused Imran of violating the agreement, suspending the programme and laying landmines in the foundation of the economy by giving the fuel subsidy.
Allied party rulers claimed that the government was compelled to take very determined and difficult decisions in order to save Pakistan from default.
The value of the rupee and the economic condition started to improve after persistent efforts for four months, they claimed. The coalition government added that the PTI government knew that the IMF would hold its board meeting on August 29 to revive the economic programme in Pakistan.
“At this time, the KP government took a step with bad intention. This action proved that a foreign aided party was bent upon pursuing an agenda for the economic destruction of Pakistan,” it read, “Like before, we will defeat this conspiracy as well and will defend the economic sovereignty of Pakistan.”
The government was fully focused and giving priority to the rescue and relief of the flood affected persons, they said, adding: “As at this time assistance and rehabilitation of the flood-hit people should be the national priority. We will not let the operation, of saving lives of people and mitigation of their difficulties, fall prey to politics.”
Jhagra’s letter
“This imported govt doesn’t need enemies. Their own party hierarchy & their chamchas in the press are enough to sabotage their own…” Jhagra said in a tweet while sharing the letter sent to Miftah. “Why would the KP govt or I write to the IMF? Please read the letter I wrote to the Federal Finance Minister for yourself,” he said.
The KP finance czar had listed four issues in the letter written with the subject of ‘provincial surplus in the IMF MoU’. It included budget allocations for erstwhile Federal Administered Tribal Areas (Fata), NHP transfers, NFC Award, and liabilities to the KP Energy Development Organisation.
“We estimate that the overall impact of not resolving these issues is actually to create an Rs100 billion unfunded liability in the KP budget,” said the letter. He added the situation was more challenging after the devastations caused by flooding.
