!-- Google tag (gtag.js) -->

Imran Khan Deflects Blame for Pakistan’s Economic Crisis to Sharif’s “Imported Government

The former PM is preparing for a giant march in Islamabad tomorrow that comes against the backdrop of a spiralling foreign reserve crisis.

May 24, 2022
Imran Khan Deflects Blame for Pakistan’s Economic Crisis to Sharif’s “Imported Government
Khan said that the US’ intervention in Pakistan’s domestic affairs has fuelled “anti-Americanism” in the country.
IMAGE SOURCE: CNN

In an interview with CNN, former Pakistani PM Imran Khan rubbished claims that the country’s spiralling foreign reserve crisis was created by his government, arguing that all economic indicators were positive during his tenure, which ended abruptly last month. 

Deflecting blame, Khan said that the Sharif government is run by a “bunch of criminals” who had been “plundering the country” for over thirty years in power. To this end, he said that his government had inherited a “bankrupt economy” with a heavy current account deficit and was then hit by the COVID-19 pandemic and the consequent record-high inflation.

Khan asserted that despite these challenges, Pakistan reported a 5.6% growth rate in his third year in office, and 6% in his fourth year. Keeping this in mind, Khan said that foreign reserves falling to $16 billion and the rupee’s value plummeting to an all-time low of 200 against the dollar is due to ‘regime change’ and a loss of confidence in the government.

He stressed, however, that the crisis did not take place “overnight” and rather was a product of decades of economic mismanagement, whereby more foreign reserves were spent than earned.

Pakistan’s current account deficit could hit $17.5 billion this year, or around 4.5% of the GDP. Furthermore, its trade deficit stands at $39.2 billion.

Against this backdrop, the government is in talks with the International Monetary Fund (IMF) for the next tranche of $1 billion in bailout funds and is also seeking aid from China and Saudi Arabia.

It has also instituted an import ban against a range of ‘luxury’ goods, including mobile phones, cars, fruit, shampoo, cornflakes, and chocolate. The State Bank of Pakistan has admitted that it only has enough funds to afford one and a half months of imports.

Much of Khan’s interview focused on his continued claims that United States (US) Assistant Secretary for South and Central Asian Affairs Donald Lu was behind the conspiracy to oust him via a trust vote. Khan slammed the US official for his “arrogance” and “bad manners.” 

The US State Department has previously rubbished Khan’s comments as a “conspiracy theory,” with spokesperson Ned Price saying last month that there is “no truth whatsoever” to the allegations and that the US never supports one political party over another.

Though Khan complained to the National Security Committee (NSC) of a “blatant intervention in the internal affairs of Pakistan,” the NSC determined that there was no “regime change conspiracy” afoot.

Khan, however, alleged in the CNN interview that by installing the “imported government” of Shehbaz Sharif, the US has fuelled “anti-Americanism” in the country, citing the examples of Iran and South American countries.

Keeping this in mind, he expressed confidence that his PTI party would emerge as the “single largest party” in the next elections because the people were “insulted” that “criminals have been imposed” upon Pakistan.

Khan also addressed criticism of his decision to maintain close contact with Russia and even meet with Vladimir Putin in Moscow on the same day that they invaded Ukraine, saying it was necessary to secure an agreement for a 30% discount on Russian oil. He underscored, however, that he remains opposed to military solutions to political issues.

In this regard, he asked why there has not been a similar condemnation of the US’ selective positions on the Kashmir and Palestine crises. 

The interview comes as Khan plans to lead his supporters in a giant march against the “imported government” tomorrow in Islamabad, wherein they will demand fresh elections and the dissolution of the parliament. 

Incumbent PM Sharif, however, has accused Khan of attempting to start a civil war and sabotage bailout talks with the IMF. To this end, Sharif has warned Khan that he would “hold him by his collar” for the “sin.” Information Minister Marriyum Aurangzeb, meanwhile, said that the next elections will be held after consulting the allies and said that Khan “cannot bully the government.”