Economy and democracy

IT seems that the rumours about Ishaq Dar being interim prime minister can be sourced back to Ishaq Dar himself. The other big parties to the decision have distanced themselves from the idea, including the PPP and the Leader of the Opposition. What is more instructive here is the light the episode casts on the perceived wrangling underway between the civilian leadership and some quarters, with each side apparently wanting the interim government to be composed of people selected by themselves. Each has good reason for this. One argument is for an extended caretaker regime, with a focus on stewarding the IMF programme and advancing the Special Investment Facilitation Council. The scale of the adjustment envisioned in the new IMF programme is large, possibly one of the largest undertaken in recent decades. On the fiscal side, for example, what needs to be done in the ongoing fiscal year is more or less equal to what was done in FY20 (going by the primary balance adjustment). That was the year when Hafeez Shaikh was brought in to replace Asad Umar, and the country was put through one of the most stringent economic adjustments it had ever undertaken.