Sherry Rehman slams deal with IMF

Islamabad: Parliamentary Leader of the PPP in the Senate, Senator Sherry Rehman began the Senate debate on the mini budget by saying this particular deal with the IMF has serious implications for Pakistan’s decision making to protect its national security interests.

“It will be borrowing now to just repay debt interest and will continue to impose crippling regressive taxes on the people while being unable to borrow from its own central bank in a moment of peril or crisis or need. What if the Defense of the country requires emergency mobilisation of funds? Where will the government mobilise funds from? The international banks ? This is a bizarre trade of the country’s sovereignty. With the Taliban cutting our border fence on one side and on the other Modis aggression, any contingency can arise. But it looks like we will need the IMFs approval to even defend our country,” she said.

Contrary to the government’s completely misleading claims that there is no inflation in the country, inflation has skyrocketed to the point that people are unable to afford necessities such as two square meals or even electricity. Unfortunately, the future looks bleak due to the disastrous mini-budget. Tabahi Sarkar has sold the Pakistani economy to the IMF and completely turned their back on the plight of the people of Pakistan, she added.

Regarding its impact on poor people, she continued, “Inflation has jumped from 11.50% in November to a whopping 12.30% in December and yet the government claims that not only is there no inflation in the country but that the economy is in an improved state. The ground reality is that Pakistan’s economy has been put on the ventilator due to the disastrous policies of the PTI government and poor people, yet again, are at the forefront of feeling the brunt of these policies. The price of gas has increased by a massive 300% during this government’s tenure and due to poor planning and mismanagement, most people in the country are completely deprived of gas supply during this harsh, cold winter.”

Rehman added, “There is no stopping the government in further worsening the situation. They have agreed to the terms with the IMF for $1 billion and will now enact the mini-budget that will bring a whole new wave of inflation. Catastrophe awaits every working-class Pakistani, even middle-class people have become beggars in this country due to the rampant inflation, food insecurity and unemployment.”

Speaking on the serious implications of the State Bank Bill, she said “Despite the near-bankrupt state of our economy, the government has sold the State Bank to the IMF. According to the State Bank Amendment bill, which has been deemed unconstitutional time and time again, the government will no longer be able to take loans from the State Bank. Government is often irresponsible in its borrowing from the Central bank but it should not be forced to foreclose the crucial option of borrowing from its own bank let alone expecting the central bank to crisis manage; with this bill passed where is the government going to find emergency financing? Pakistan’s total debt already sits at a whopping Rs50 trillion and now this bill will push the country towards financing from commercial banks that may or may not lend to Pakistan in a crisis, especially one with national security considerations! Commercial banks will anyway lend at extremely high-interest rates and force the government to agree to their harsh and inflationary conditions.”

She continued by stating, “During PPP’s time, we also took on programs with the IMF, but we prioritised the wellbeing of the people and went towards self-sufficiency in wheat and other commodities. The PTI government had completely failed in negotiating fair terms with the IMF. The mini-budget will be their own undoing while putting the whole nation and the people in an extremely vulnerable state.”

Speaking on the Tax directory released she said, “Once again the government has found a tactic to distract the people of the country on their incompetence and blame the opposition for their own inadequacies. Tax returns show that Yousaf Raza Gillani who paid over 17 lakh agriculture tax, along with other Senators, paid no taxes in 2019 but they have deliberately manipulated the facts for the media. Yousaf Raza Gillani was not a Senator at the time when he is alleged to not have paid tax. At that time he paid full Agri taxes. The FBR and media have released inaccurate and misleading information regarding how much tax is being paid by the new Senators, even though our assets and taxes are completely accounted for and are traceable.”

She concluded by saying “PTI has failed at governance and is using media tricks to hide the fact that inflation is at 12.30%, the PKR is spiraling and that the entire country is against their dealings with the IMF. There is no denying that most of the country is dissatisfied with this government’s performance and exhausted from the inflation that their policies have unleashed. Yet there is no respite in sight under the PTI government.”