A Crucial Month

The government’s offer for a grand dialogue to resolve the most urgent issues of the country will not be entertained by the PTI leadership for now. The former government has stuck to its guns in not speaking to the new coalition set-up until a date for the elections is announced. Once again, we find ourselves at a political impasse that does not look to have any room for negotiation.

For the new government, even without these talks, this month will be crucial. First on the agenda is the resolution of the electoral reforms and changes to the NAB law that have been passed by the parliament; President Alvi has now sent these bills back for reconsideration. The government would ideally like to see these laws passed and finalised before the budget is tabled, which is scheduled to be June 10, for now. With only three days left to achieve this, the government must now summon a join sitting according to Article 75 and look for the bill to be passed through a vote with members of both houses present. If that is achieved, the government can essentially circumvent the President’s agreement to the law.

On Friday, the government has to present its budget. This is one of the most significant indicators of the government’s policy attempts to rejuvenate the economy. The only report of the budget is about the defence budget being increased—though it has dropped by 0.02 percent if looked at as a proportion of the GDP. It will be key to note where the government chooses to spend; there are already reports (although denied by the PM) of a cut to the higher education budget and other important developmental sectors. Alongside this, it will also be interesting to see how the government plans for inflows and revenue. Will it include the IMF or other sources of financing in the budget, long before anything is final?

Following this, it is being reported that Pakistan’s review for FATF is coming around June 15 as well. Sources in Foreign Office report that we have already completed all 27 action items on the plan. Will we finally be able to extricate ourselves from the grey list after four long years?

Hence, June is going to be a very eventful month, and the government may have its hands too full to consider a grand dialogue on core issues. This is indeed an important exercise that must be carried out urgently, but for that, the government still has the unenviable and near impossible task of first bringing PTI and Imran Khan back to the table, while it navigates through a crucial phase that sets the tone for development in Pakistan going forward.

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