KARACHI: Former finance minister and senior leader of the Pakistan Muslim League-Nawaz (PML-N) Miftah Ismail on Monday warned that the new arrangement of the Pakistan Tehreek-i-Insaf government with the International Monetary Fund (IMF) would bring a “storm of inflation” in the country.

He feared that the growing inflation would push majority of the country’s population towards poverty and it would become tougher to make ends meet.

He also criticised the government policy to empowering the State Bank of Pakistan (SBP) granting its governor so much authority that he was now “exploiting his office and behaving like a viceroy”.

Speaking at a press conference here, Mr Ismail said that the current move of the SBP would put immense burden on the national exchequer.

“The current increase in the interest rate from the SBP will raise government expenses by Rs400 billion,” he said. “Similarly, the private sector would face an additional Rs100bn burden.”

“It’s a misconception and deliberate move of the government to mislead people that it is increasing the interest rate to cap inflation. The interest rate has nothing to do with inflation which is increasing due to incompetence of the government and its corrupt practices,” he said.

Accompanied by PML-N leaders Nasiruddin Mahmood, Khawaja Tariq Nazeer and Ali Akbar Gujjar, the former finance minister claimed that the IMF would become directly involved in several matters of governance and the terms and condition the PTI government had agreed for a loan would ultimately force people to pay more for even essential items of daily life.

“So in simple words you [PTI government] have awarded the IMF a status above the state,” he said. “Now the government cannot ask the IMF anything. Before the fresh deal, the consumer price index (CPI) has already increased by 9.2 per cent while the sensitive price index (SPI) has witnessed a jump by 15.2pc and wholesale price index by 21.2pc year on year basis.”

“The CPI says school fees and education expenses have gone up by only 2.2pc and doctor fees and medicine prices have gone up by 8pc. The 15.2pc hike in SPI results in price hike as flour is now available at Rs60 a kilo, mutton and beef at Rs 1,132 and Rs 558 per kg, respectively,” he said.

Published in Dawn, November 23rd, 2021