Toshakhana gifts
THE government shocked the Lahore High Court this week when during a hearing of a petition seeking past details of Toshakhana gifts, it said such disclosure would “cause damage to Pakistan’s international relations”. The revelation comes across as sheer hypocrisy, given how zealously the incumbent government has been chasing PTI chairman Imran Khan to reveal the details of his purchase of Toshakhana gifts. Surely, if the government is filing cases against Mr Khan, it is only fair that it allows itself to be held to the same standard and reveals the details of gifts received by past PPP and PML-N governments. The reluctance to do so only creates an impression that, much like its predecessor, this government is not interested in accountability and is, instead, engaged in a witch-hunt against its key political opponent. Ironically, both Mr Khan and the government have presented the same excuse for withholding information on the gifts received — that the exercise would ‘embarrass’ the dignitaries who gave them.
This reluctance on the part of both parties underscores the need for a clear Toshakhana policy, so gifts are not sold off to politicians and others at throwaway prices. It is necessary to define what qualifies as a gift, to log such gifts and upload their details to a publicly accessible digital archive. Only independent assessors should be allowed to determine the market value of the gifts to avoid controversies that help no one and overshadow the need for reform of the system. The policy should stipulate a period of time, say five to 10 years, before the gift can be sold off. In the absence of such a policy, our leaders arbitrarily have these gifts assessed so that they can be undervalued and bought at a price lower than their true value. The Toshakhana controversy that haunts past PMs is actually more embarrassing for the country and will continue to be so unless a firm policy is formulated.
Published in Dawn, January 21st, 2023
Out of exile
EXILE is nothing new for Pakistan’s political class. Leaders have often slipped away to safer foreign climes fearing persecution at home by the powers that be, while at times strongmen have allowed ‘troublesome’ politicians to leave Pakistan. Former PM and PML-N supremo Nawaz Sharif is no stranger to exile. While he has been in the UK since 2019 after getting relief from the courts, he had spent a much lengthier exile in Saudi Arabia after Gen Musharraf’s coup. Apart from Mr Sharif, other leaders have also chosen foreign locales to ride out the storm at home. These include former PM Benazir Bhutto, while MQM leader Altaf Hussain has been leading a comfortable life in the British capital since fleeing Pakistan around three decades ago. But it is not just political leaders who have sought refuge abroad. Former military ruler Gen Musharraf — currently ill— also left the country fearing legal problems after he was out of office.
Coming back to Nawaz Sharif, many in Pakistan, especially his supporters, are wondering when Mian Sahib will return to his homeland. Talking to the media in London after a party huddle on Thursday, Mr Sharif promised to take the country out of the quagmire it is stuck in. However, Interior Minister Rana Sanaullah, who had been summoned to the UK, was non-committal about the date of the elder Sharif’s return, saying instead, that he will “lead the party’s election campaign” in Pakistan. Moreover, Maryam Nawaz, who has been with her father in London since last October, is also showing no signs of returning to the country, though Mr Sanaullah told the media the PML-N’s recently christened chief organiser will be back in Pakistan “next week”. Mian Sahib has little to worry about. His party rules Pakistan, the legal obstacles preventing his return are being removed one by one, and presumably the establishment is also not averse to his return. Then what is stopping him? The country is going through multiple crises, the foremost of which include an imminent economic collapse, political dissonance and resurgent terrorism. If Nawaz Sharif and Maryam Nawaz are serious about offering solutions to Pakistan’s myriad problems, then they need to return home and lead from the front. Holding court in London and summoning ministers for audiences will not do when the people of Pakistan are bravely confronting multiple challenges.
Published in Dawn, January 21st, 2023
Seeing sense
IN deciding to step back from its rigid position on the IMF’s bailout conditions, and leaning towards an early resumption of the stalled loan programme, the ruling coalition has made a sensible choice.
Reports suggest that the government has finally invited the lender of last resort to sit at the table to sort out all outstanding issues that have impeded the finalisation of the Fund’s ninth review for almost four months and delayed the disbursement of the next loan tranche.
Anonymous officials say the government has completed its workings on all contentious areas on the basis of its informal interactions at the recent Geneva conference after weeklong deliberations, with input from the PM.
However, it remains unclear if the rulers are ready to go the whole nine yards to close the deal that is crucial to stabilising Pakistan’s weakening external sector. Indeed, the acceptance of IMF conditions will bruise the egos of some top finance managers of the government who particularly oppose the free float of the rupee.
However, this is hardly a cogent reason to delay action on the IMF’s demands. It’s also not clear if the IMF will agree to send its team by the end of next week as requested by the finance secretary or if it will wait for Islamabad to first execute the actions needed to meet its conditions.
There is no denying that implementation of the loan conditions — a market-based exchange rate, increase in electricity and gas rates, additional taxes to make up for revenue slippages in order to contain the budget deficit within the original programme targets, removal of import curbs, etc — will further eat into the ruling PML-N’s political capital ahead of provincial assembly polls in Punjab and KP, as well as the approaching general elections.
Nevertheless, the government has no other options left to avert a sovereign default over the next six to 12 months.
The Saudi finance minister’s statement at the World Economic Forum that future support from the kingdom to its allies would be aligned with multilateral agencies, and would also depend on the countries’ willingness to revamp their economy indicates that the investment and other financial support plans announced recently by ‘friendly’ countries for Pakistan are not likely to materialise without the IMF on board.
Prime Minister Shehbaz Sharif’s desire to ‘sweeten the bitter pill’ of IMF conditions and put minimal economic burden on the inflation-stricken people is understandable: the choice he faces is politically tough, to say the least. But he has no way around it.
Further delay in repairing the relationship with the IMF will only exacerbate the political price his party will have to pay as well as increase the already hefty economic costs being borne by the people and state.
Published in Dawn, January 21st, 2023