Baig, a founder member of the PDP, expressed the hope that Mehbooba will be able to take control of the situation but cautioned her that in case she feels that the two "alliance partners are incompatible", she is left with only one option and that is to resign.
The PDP leader said he had no two opinions that their party president will live up to expectations and bring the situation in the restive Kashmir Valley under control.
"If this alliance does not work for inner contradictions, because we are incompatible and what we have on paper is a paper of fraud and not a paper of good faith...If she comes to that conclusion and she does not get the support she must resign in honour," Baig, who is in the national capital, told TV channels.
He said the PDP was suffering on the ground. "It is the worker at the ground level, the cadre that makes the party, they are losers any which way. We have not benefited them a bit, we have done nothing for our workers. We have not acted upon our common agenda of alliance. That is the real reason why we are in trouble today," he said.
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"Take the case of Hurriyat Conference. Too little attention has been given to them," he said and added that if the Centre feels they are not the stakeholders, keep them on the side and talk to Pakistan directly.
He said a sense of "disillusion" was running deep into party cadre but even in these tough times, "I have not heard a single responsible person saying that Mehbooba should resign because she has failed."
"But once there is peace and still the alliance does not work, either for ideological reasons or administrative reasons or lack of agreement on implementing the Agenda of Alliance, that will be the right time to dissolve the government both for BJP and PDP but never run away when it is a difficult time," he said.