Petty moves by PTI jeopardising IMF programme: Miftah Ismail

Finance Minister Miftah Ismail on Monday bashed the Pakistan Tehreek-e-Insaf (PTI) leadership for putting the revival of International Monetary Fund (IMF) programme at risk “just hours before the lender is set to approve the next tranche.”

In a press conference, he added that floods are wreaking havoc in Pakistan and the nation was looking towards the IMF tranche for relief amid the ongoing difficult times.

“However, petty moves by PTI leadership are jeopardising the revival of bailout,” he regretted.

His press conference comes after an allegedly leaked audio of a conversation between former finance minister Shaukat Tarin and Punjab Finance Minister Mohsin Khan Leghari.

In the leaked audio, allegedly involving Tarin and Leghari, the man said to be Tarin could be heard guiding Leghari to write a letter to the IMF citing that Punjab’s budget commitment had changed after devastating floods and hence, the province will not be able to fulfil its promises.

PTI seeks to upset govt-IMF apple cart?

In a second audio, the man said to be Tarin could be heard briefing Jhagra on what to mention in the letter to be sent to the IMF. In response, Jhagra allegedly stated that he would spare no blackmail tactic and he knew a prominent IMF official in Pakistan.

Both audio clips have not been verified for authenticity by Business Recorder.

However, PTI leader and former minister for human rights Shireen Mazari, apparently owning up to the audio, said that there was nothing wrong in the conversation between Tarin and Leghari. Instead, she called the wiretapping "illegal without a court order".

“We have publicly opposed the terms on which imported government is taking loan from IMF,” she tweeted. “What is illegal is the wiretapping done on conversation without court order. A criminal offence.”

Meanwhile, in the press conference, Miftah also referred to a recent interview of PTI leader Fawad Chaudhry in which he stressed that Punjab and Khyber-Pakhtunkhwa will block the approval of next tranche of IMF programme.

As per IMF’s conditions, Pakistan needs to show a primary surplus balance of 0.4% of GDP. To fulfil this condition, provinces need to contribute as well.

He questioned if PTI was ready to place Pakistan at stake just for one person’s hunger for power. He further lamented that PTI leader Asad Umar justified Jhagra’s letter “which was against the interest of the nation.”

Miftah noted that while Jhagra claims that the letter has not been sent to IMF, sources in the global institution informed him that they have infact “received the letter.”

IMF-assessed financing gap bridged: govt

He termed it the responsibility of PTI Chairman Imran Khan to apologise to the country and the public and stated that “Tarin should leave politics.”

The finance minister further criticised the PTI-led Khyber-Pakhtunkhwa (K-P) government for creating 54,000 posts in the province which was far more than the requirement and would drain finances of Pakistan.

“Other provinces are also unhappy with us and they are writing to us frequently but Jhagra wrote to IMF just 72 hours before its board meeting in which the Fund will discuss Pakistan’s case,” he said. “We left no stone unturned in securing this tranche and leaders of Pakistan should focus on the betterment of the country.”

Asad Umar and Taimur Jhagra defend letter

In a separate press conference, held at the same time on Monday, Khyber-Pakhtunkhwa Finance Minister Taimur Khan Jhagra defended the letter and owned it.

Speaking alongside former planning minister Asad Umar, he recalled meeting Miftah before budget 2022-23 announcement and telling that that K-P’s expenditures could not be met.

Imran Khan asks Miftah to seek relief from IMF

“In response, I was told that the matter would be taken up in the budget speech but it was not discussed,” Jhagra emphasised.

“We tried to highlight this again on July 5 and Miftah said the federal government will work with the provincial government to resolve the matter. However, the finance minister kept delaying it.”

Umar stated that Tarin advised K-P and Punjab to ask federal government to bring the devastation caused by floods in the knowledge of IMF and demand relief in provincial budget surplus targets.

“This is good advice. When Covid surfaced in Pakistan, Imran Khan managed to secure fiscal space for Pakistan by talking to IMF managing director,” he said.