PM Imran Khan’s otherwise docile cabinet deferred the approval of Rs360 billion mini-budget for the second time in a week. With the IMF taking up review of the $6 billion Extended Fund Facility (EFF) for Pakistan on January 12, the govt has a short time to put its act together.
The assurance that the mini budget won’t burden the people with new taxes is belied by the fact that it is estimated to slap 17% sales tax on about 140 essential consumable and industrial goods. Prices of milk, cereals, bakery items, meat, chicken, , bicycles, cars and mobile phone calls will rise, unleashing another wave of inflation in the country. The inflation Tsunami will go against the PTI in LG elections in Punjab.
After the KP Local Government polls, PTI legislators are scared of rising inflation. Some have criticized their own government for failure to bring down prices. The spiraling cost of living amid stagnating wages and growing unemployment have already eroded much of the political capital of the party and its Prime Minister. PTI’s cabinet ministers cannot ignore public sentiment. The PTI leadership is worried that some of its MNAs might cast vote against the mini budget or abstain during the voting. The government is not confident if all of its allies would support the budget. The PMLQ has already called a special meeting of party legislators to discuss the issue as they too have to face the public in forthcoming LG elections in Punjab
Legislation through Ordinance has been the PTI’s favourite practice whenever it wanted to get an unpopular bill passed. It would even get several Ordinances passed in one go whenever it found the opposition napping. Unsure of who would win the general elections in 2023, the IMF wants the Parliament to pass the mini-budget binding whosoever is in power to enforce the budgetary provisions.
In case the government fails to get the mini budget passed, Imran Khan might be required to seek a vote of confidence. If the bill is passed his support base would be further eroded. As the rejection of the bill would affect powerful circles also it might finally be passed while PTI would be held responsible for its devastating economic effects.
