Imran says he warned economy would 'go into a tailspin' if his govt was ousted

Former prime minister Imran Khan said on Friday he had anticipated that if the "foreign conspiracy" against his government succeeded, Pakistan's economy would go "into a tailspin".

Tweeting about the current state of the economy - the rupee hitting an all-time low and soaring inflation - the Pakistan Tehreek-e-Insaf (PTI) chairman blamed the situation on the newly-elected coalition government, saying that it reflects lowest confidence in the current "imported government".

"Market awaiting policy and action, which imported govt has failed to provide. Both myself and Shaukat Tarin had warned the "neutrals" that if conspiracy succeeded our fragile economic recovery would go into a tailspin."

His statement comes as the country, with a widening trade deficit, sees a plunge in its foreign exchange reserves in recent months owing to imports and debt payments.

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased another $190 million to $10.31 billion, said the central bank on Thursday, with the level staying at less than 1.5 months of import cover.

SBP-held foreign exchange reserves fall another $190mn, now stand at $10.31bn

The decline in reserves has added to the pressure on the local currency as well, which has seen a significant decline in its value against the US dollar and is being currently trading above the 190 level.

Imran has repeatedly blamed a West-led conspiracy for the no-confidence motion against him. He also flashed a piece of paper during a rally on March 27, which he said was a letter proving the threat made to his government.

He said the “threat letter” carried details of a meeting that Asad Majeed Khan, ambassador of Pakistan to the US, had with Assistant Secretary of State for South and Central Asia Affairs Donald Lu in which the latter allegedly threatened Pakistan.

Meanwhile, the incumbent government remains engaged with the International Monetary Fund (IMF) in reviving the stalled Extended Fund Facility (EFF) with various items on the agenda including the hotly-debated fuel subsidy.

Revival of the programme paves way for a $900-million tranche as well as other sources of funding, with Islamabad also seeking an extension in duration and size of the $6-billion EFF.