A public spat between members of the same political party with divergent views on a particular issue is quite normal and such exchanges, if infrequent and impersonal in nature, are good for the democratic development of the party. However, the recent washing of dirty linen by the former and current finance ministerS, by virtue of their respective posts in the PML(N) and the condition of the economy currently, was a discussion best had behind closed doors in the presence of senior leadership. In fact, such exchanges, like the one Miftah Ismail and Ishaq Dar had over dealing with the IMF and the likelihood of the latter possibly going back on the policy-level promises made by the former to the fund, are usually seen taking place between government and opposition politicians over each other’s handling of the economy.
Dr Ismail is bitter, and understandably so. He was made to take all the unpopular decisions to get the IMF program restarted and he took all of that pressure and abuse well. The unceremonious and embarrassing exit from Q-block that followed after the dirty work was more or less done would leave the most forgiving and seasoned of politicians quite salty. Senator Dar was already very much involved in the running of the economy and it was only a matter of time before he was formally given the top position considering the increasing dislike for Dr Ismail in the London-group, verified by a leaked audio recording of Maryam Nawaz, and that he did not possess a Senate or MNA seat.
Senatot Dar has decided to take the bull by the horns and clearly isn’t taking any prisoners. His clear-cut instructions to Dr Ismail to stay out of matters that no longer concern him also indirectly indicates to the IMF that he isn’t necessarily bound by the conditions his predecessor agreed to. Apart from attempting to overvalue the rupee as he did during 2014-17, his recent comments on bringing the discount rate down and meetings with the SBP governor at finance division since his return, would also not go down well with the IMF that got legislation passed by the PTI in January this year to bring sweeping amendments to the SBP Act 1956 to ensure greater autonomy of the central bank.
That IMF’s point person in Islamabad felt compelled to comment yesterday ‘policy commitments made by Pakistan will continue to apply’ shows how Senqator Dar’s statements and actions have not gone unnoticed. It would be best to tread carefully; the economy does not afford another IMF programme suspension.
