Economic policy

 In terms of domestic economic policy, Khan inherited a twin balance of payments and debt crisis upon assuming office in 2018, characterized by a significant current account deficit and fiscal deficit. His government sought assistance from the IMF to address these challenges. In exchange for the bailout, Khan's administration implemented austerity measures, cutting subsidy spending in the energy sector and unveiling an austerity budget to reduce the fiscal deficit and limit government borrowing. The IMF also insisted on the depreciation of the rupee and improvements in tax collection. Khan's government opted to raise import tariffs to boost tax revenues and devalued the currency, which, alongside heavy import duties, helped mitigate the current account deficit through import substitution.

Pakistan's overall balance of payments improved notably following record-high remittances in 2020, stabilizing the central bank's foreign exchange reserves. The fiscal deficit narrowed to less than 1% of GDP by 2020 due to austerity measures, and the rate of debt accumulation slowed considerably. However, Pakistan's debt remained high due to significant borrowing by previous administrations, necessitating substantial allocations to repay loans taken during their tenures.

In addition to IMF-mandated reforms, Khan's government implemented policies to enhance the business environment. As a result, Pakistan climbed 28 places on the World Bank's ease of doing business index in 2019, ranking among the top 10 most improved countries. Tax collection also reached record highs, primarily from domestic taxes, with import tax revenues remaining stable due to reduced imports.

The fiscal deficit was further controlled to less than 1% of GDP in the latter half of 2020, with Pakistan recording a primary surplus. However, when accounting for interest payments on debt, a deficit persisted, albeit smaller. This reduction in the fiscal deficit was attributed primarily to increased non-tax revenues, including higher oil prices paid by consumers to state-owned oil companies. Nonetheless, tax revenues also saw an upward trajectory, with the Federal Board of Revenue exceeding its collection targets and setting records in the fiscal year 2021.

In terms of international trade policy, Khan's government implemented the second phase of the China–Pakistan Free Trade Agreement in January 2020, negotiating concessionary rates from China on Pakistani exports to mainland China, such as reduced or zero tariffs. These negotiations were hailed as a significant milestone in Pakistan's foreign policy, expanding trade relations beyond traditional defense and security matters.

Furthermore, Khan's government addressed concerns regarding terror financing laws after Pakistan was placed on the FATF grey list in June 2018. Initially, temporary legislation was enacted through presidential decrees to comply with FATF requirements. Subsequently, permanent legislation was introduced in parliament, with partial support from opposition parties. Despite hurdles from the opposition-dominated Senate, the government successfully passed necessary bills in a joint session of parliament. By October 2020, Pakistan had made significant progress in addressing FATF requirements, and by February 2021, approximately 90% of the agenda was completed. Continued efforts led to further progress, with Pakistan addressing 26 out of 27 action items by June 2021. Ultimately, Pakistan's successful implementation of its action plan led to its removal from the FATF grey list in October 2022.

Khan with Ali Khamenei and Hassan Rouhani

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Prime Minister of Pakistan

 On 17th August 2018, Khan secured 176 votes and assumed the role of the 22nd Prime Minister of Pakistan, taking the oath of office on 18th August 2018. Following his inauguration, Khan initiated significant changes within the country's bureaucracy, appointing Sohail Mahmood as Foreign Secretary, Rizwan Ahmed as Maritime Secretary, and Naveed Kamran Baloch as Finance Secretary. Notably, he appointed Lieutenant General Asim Munir to the crucial position of Director-General of Inter-Services Intelligence, marking his first major appointment within the Pakistan Army.

Khan promptly announced his cabinet selections after assuming office, opting to retain the Ministry of Interior for himself initially, though later appointing Ijaz Ahmed Shah as interior minister. Many of his cabinet appointees had previous ministerial experience during the Musharraf era, while others had defected from the left-wing People's Party. In 2019, Khan committed to a significant reshuffle in key ministries, including interior, finance, information, and planning.

Despite the assassination of Saudi journalist Jamal Khashoggi, Khan emphasized the importance of maintaining strong relations with Saudi Arabia amidst Pakistan's economic crisis. He also expressed concerns over U.S. sanctions against Iran, highlighting the adverse impact on Pakistan and advocating against further conflicts in the Muslim world.

Khan prioritized fostering close ties with China, although he stated limited awareness regarding China's treatment of its Muslim population. Nonetheless, Khan affirmed that he had privately addressed the issue in discussions with Chinese officials.

In 2019, Khan was recognized as one of Time magazine's 100 Most Influential People in the "Leaders" category. 

Khan with US President Donald Trump and First Lady Melania Trump at the White House in July 2019

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In the 2018 general election

 

Khan participated in the electoral campaign across multiple constituencies, including NA-35 (Bannu), NA-53 (Islamabad-II), NA-95 (Mianwali-I), NA-131 (Lahore-IX), and NA-243 (Karachi East-II). Initial results showed Khan leading the polls, but allegations of vote rigging and administrative malpractices were raised by opposition parties, particularly the PML-N. Despite this, election officials declared Khan's party, PTI, as having won a plurality in the National Assembly with 110 seats, later revised to 116 out of 270 contested seats. Khan's victory was notable as he won in all five constituencies, a feat unprecedented in Pakistan's electoral history.

Following the election, Khan's party announced a 100-day agenda focusing on government reforms, including proposals for the creation of a new province in Southern Punjab, the merger of Federally Administered Tribal Areas into Khyber Pakhtunkhwa, improvements in Karachi's law and order situation, and efforts to strengthen relations with Baloch political leaders.

However, allegations of widespread rigging persisted, with opposition parties accusing Khan's victory of being influenced by military interference. Despite these claims, the Election Commission dismissed the allegations, and PTI's victory was acknowledged even by its opponents, although with reservations.

In his victory speech, Khan outlined his policy priorities, emphasizing a commitment to building a welfare state inspired by the principles of the first Islamic state of Medina. He pledged to prioritize the welfare of the poor and marginalized, ensure equal treatment under the law, and pursue a foreign policy aimed at improving relations with neighboring countries and global powers.

Following his nomination as PTI's candidate for prime minister, Khan promised to be publicly accountable, pledging to hold weekly sessions to answer questions from the public. He proceeded to make nominations and appointments for key government positions, including Asad Umar as finance minister, Imran Ismail as Governor of Sindh, and Mahmood Khan as Chief Minister of Khyber Pakhtunkhwa.

Khan's party also nominated individuals for various other positions at both national and provincial levels, including Chaudhry Muhammad Sarwar as Governor of Punjab, Asad Qaiser as Speaker of the National Assembly, and Sardar Usman Buzdar as Chief Minister of Punjab. These nominations reflected a mix of party insiders and alliances with other political factions.

Khan holding a media press with Arif Alvi during the 2018 electoral campaign

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In opposition

 See also: 2014 Azadi march, Pervez Khattak administration, Khyber Pakhtunkhwa Investment Roadshow, and Panama Papers case

Khan led Pakistan Tehreek-e-Insaf became the opposition party in Punjab and Sindh. Khan became the parliamentary leader of his party. On 31 July 2013, Khan was issued a contempt of court notice for allegedly criticising the superior judiciary, and his use of the word shameful for the judiciary. The notice was discharged after Khan submitted before the Supreme Court that he criticised the lower judiciary for their actions during the May 2013 general election while those judicial officers were working as returning officers. Khan's party swept the militancy-hit northwestern Khyber Pakhtunkhwa and formed the provincial government. PTI-led Khyber Pakhtunkhwa government presented a balanced, tax-free budget for the fiscal year 2013–14. During his provincial government, Khan was criticised for his support for Sami-ul-Haq, the "Father of the Taliban," and giving funds to his seminary, Darul Uloom Haqqania.

Khan believed that terrorist activities by the Pakistani Taliban could be stopped through dialogue with them and even offered them to open an office in Khyber Pakhtunkhwa. He accused the United States of sabotaging peace efforts with the Pakistani Taliban by killing its leader Hakimullah Mehsud in a drone strike in 2013. He demanded the government to block NATO supply line in retaliation for the killing of the TTP leader. On 13 November 2013, Khan, being party leader, ordered Pervez Khattak to dismiss ministers of Qaumi Watan Party (QWP) who were allegedly involved in corruption. Bakht Baidar and Ibrar Hussan Kamoli of Qaumi Watan Party, ministers for Manpower and Industry and Forest and Environment, respectively, were dismissed. Khan ordered Chief Minister Khyber Pakhtunkhwa to end the alliance with QWP. The Chief Minister also dismissed Minister for Communication and Works of PTI Yousuf Ayub Khan due to a fake degree.

A year after elections, on 11 May 2014, Khan alleged that 2013 general elections were rigged in favour of the ruling PML (N). On 14 August 2014, Imran Khan led a rally of supporters from Lahore to Islamabad, demanding Prime Minister Nawaz Sharif's resignation and investigation into alleged electoral fraud. On its way to the capital Khan's convoy was attacked by stones from PML (N) supporters in Gujranwala; however, there were no fatalities. Khan was reported to be attacked with guns which forced him to travel in a bullet-proof vehicle. On 15 August, Khan-led protesters entered the capital and a few days later marched into the high-security Red Zone; on 1 September 2014, according to Al Jazeera, protesters attempted to storm Prime Minister Nawaz Sharif's official residence, which prompted the outbreak of violence. Three people died and more than 595 people were injured, including 115 police officers. Prior to the violence that resulted in deaths, Khan asked his followers to take law into their own hands.

By September 2014, Khan had entered into a de facto alliance with Canadian-Pakistani cleric Muhammad Tahir-ul-Qadri; both have aimed to mobilise their supporters for regime change. Khan entered into an agreement with the Sharif administration to establish a three-member high-powered judicial commission which would be formed under a presidential ordinance. The commission would make its final report public. If the commission found a country-wide pattern of rigging proved, the prime minister would dissolve the national and provincial assemblies in terms of the articles 58(1) and 112(1) of the Constitution – thereby meaning that the premier would also appoint the caretaker setup in consultation with the leader of the opposition and fresh elections would be held. He also met Syed Mustafa Kamal, when he was in the opposition.

Voice of America reports on Khan-led protests in late 2014.

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2013 elections campaign

 See also: Pervez Khattak administration and Pakistani general election, 2013

Khan with U.S. Secretary of State John Kerry after the 2013 elections

On 21 April 2013, Khan launched his final public relations campaign for the 2013 Pakistani general election from Lahore, where he addressed thousands of supporters at the Mall. Khan announced that he would withdraw Pakistan from the US-led war on terror and bring peace to the Pashtun tribal belt. He addressed different public meetings in various cities of Khyber Pakhtunkhwa and other parts of the country, where he announced that PTI would introduce a uniform education system in which the children of rich and poor would have equal opportunities. Khan concluded his south Punjab campaign by addressing rallies in various Seraiki belt cities.

Khan concluded the campaign by addressing a rally of supporters in Islamabad via a video link while lying on a bed at a hospital in Lahore. The last survey before the elections by The Herald showed 24.98 percent of voters nationally planned to vote for his party, just a whisker behind former Prime Minister Nawaz Sharif's PML-N. On 7 May, just four days before the elections, Khan was rushed to Shaukat Khanum hospital in Lahore after he tumbled from a forklift at the edge of a stage and fell headfirst to the ground. The 2013 Pakistani general election was held on 11 May throughout the country. The elections resulted in a clear majority of Pakistan Muslim League (N). Khan's PTI emerged as the second-largest party by popular vote nationally, including in Karachi. Khan's party PTI won 30 directly elected parliamentary seats and became the third-largest party in the National Assembly behind Pakistan People's Party, which was second.

Khan with U.S. Secretary of State John Kerry after the 2013 elections

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Early political career

Initial years

Khan tearing his nomination paper for the National Assembly at a press conference; he boycotted the 2008 elections.

Khan was offered political positions more than a few times during his cricketing career. In 1987, President Muhammad Zia-ul-Haq offered him a political position in Pakistan Muslim League (PML) which he politely declined. Khan was also invited by Nawaz Sharif to join his political party. In 1993, Khan was appointed as the ambassador for tourism in the caretaker government of Moeenuddin Ahmad Qureshi and held the portfolio for three months until the government dissolved. In 1994, Khan joined the Jamiat-e-Pasban, a breakaway faction of Jamaat-e-Islami, of Hamid Gul and Muhammad Ali Durrani. On 25 April 1996, Khan founded a political party, Pakistan Tehreek-e-Insaf (PTI). He ran for the seat of National Assembly of Pakistan in 1997 Pakistani general election as a candidate of PTI from two constituencies – NA-53, Mianwali and NA-94, Lahore – but was unsuccessful and lost both the seats to candidates of PML (N).

Khan tearing his nomination paper for the National Assembly at a press conference; he boycotted the 2008 elections.

Khan supported General Pervez Musharraf's military coup in 1999, believing Musharraf would "end corruption, clear out the political mafias". According to Khan, he was Musharraf's choice for prime minister in 2002 but turned down the offer. Khan participated in the October 2002 Pakistani general election that took place across 272 constituencies and was prepared to form a coalition if his party did not get a majority of the vote. He was elected from Mianwali. In the 2002 Pakistani referendum, Khan supported military dictator General Musharraf, while all mainstream democratic parties declared that referendum as unconstitutional. He also served as a part of the Standing Committees on Kashmir and Public Accounts. On 6 May 2005, Khan was mentioned in The New Yorker as being the "most directly responsible" for drawing attention in the Muslim world to the Newsweek story about the alleged desecration of the Qur'an in a US military prison at the Guantánamo Bay Naval Base in Cuba. In June 2007, Khan faced political opponents in and outside the parliament.

On 2 October 2007, as part of the All Parties Democratic Movement, Khan joined 85 other MPs to resign from Parliament in protest of the presidential election scheduled for 6 October, which General Musharraf was contesting without resigning as army chief. On 3 November 2007, Khan was put under house arrest, after President Musharraf declared a state of emergency in Pakistan. Later Khan escaped and went into hiding. He eventually came out of hiding on 14 November to join a student protest at the University of the Punjab. At the rally, Khan was captured by student activists from the Islami Jamiat-e-Talaba and roughly treated. He was arrested during the protest and was sent to the Dera Ghazi Khan jail in the Punjab province where he spent a few days before being released.

Khan at the conference "Rule of Law: The Case of Pakistan" organised by the Heinrich Böll Foundation in Berlin

Khan at the conference "Rule of Law: The Case of Pakistan" organised by the Heinrich Böll Foundation in Berlin

On 30 October 2011, Khan addressed more than 100,000 supporters in Lahore, challenging the policies of the government, calling that new change a "tsunami" against the ruling parties. Another successful public gathering of hundreds of thousands of supporters was held in Karachi on 25 December 2011. Since then Khan became a real threat to the ruling parties and a future political prospect in Pakistan. According to an International Republican Institute's survey, Khan's Pakistan Tehreek-e-Insaf tops the list of popular parties in Pakistan both at the national and provincial level.

On 6 October 2012, Khan joined a vehicle caravan of protesters from Islamabad to the village of Kotai in Pakistan's South Waziristan region against US drone missile strikes. On 23 March 2013, Khan introduced the Naya Pakistan Resolution (New Pakistan) at the start of his election campaign. On 29 April The Observer termed Khan and his party Pakistan Tehreek-e-Insaf as the main opposition to the Pakistan Muslim League-Nawaz. Between 2011 and 2013, Khan and Nawaz Sharif began to engage each other in a bitter feud. The rivalry between the two leaders grew in late 2011 when Khan addressed his largest crowd at Minar-e-Pakistan in Lahore. From 26 April 2013, in the run up to the elections, both the PML-N and the PTI started to criticise each other.

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