The PML-N looks divided over how to handle the issue of subsidy on petroleum products, a booby trap left by a scheming Imran Khan to avenge the no-confidence move that threw him out of power. The PML-N leaders understand that if the government was to transfer the burden of Rs 120 billion a month to the consumers it would be an immensely unpopular measure. The PML-N alone is unwilling to take the responsibility for the move. As Interior Minister Rana Sanaullah put it, his party has the ability to revive the economy, ruined by the PTI, but there is a cost for it that all coalition partners have to jointly share. It is maintained that public resentment can be reduced by diversion of development funds to large scale targeted subsidies and by putting the economy on track by recourse to IMF which will encourage friendly countries to extend loans to Pakistan. By restricting imports and increasing exports the country could also bring down the current account deficit. The PM is expected to discuss the issue with coalition partners before making an announcement. It appears from Bilawal Bhutto’s Karachi address that the PPP is willing to join hands.
There are suspicions however that the ruling coalition might be sent home after it has withdrawn subsidies instead of being allowed to enforce economic reforms over the next fifteen months that would earn it public acclaim. The insistence from certain quarters to hold the elections by October means the present government would be required to hand over to the interim set up after July this year which will not be acceptable to coalition partners. PM Shahbaz Sharif would be required to explain to all stakeholders including the establishment the grave situation of the economy and the need to jointly take urgent decisions before Pakistan ends up in a much deeper economic crisis.
The coalition government is left with only two options: raise fuel prices or dissolve the National Assembly and hold elections. IK has already announced that his long march will reach Islamabad on May 20 and would not return until a date for the next general elections was given. Circumstances require PM Shahbaz Sharif to move apace.
