During a Saturday press conference in LAHORE, Prime Minister Shehbaz Sharif said that an increase in energy rates was a condition of the IMF’s loan program and that Pakistan would have to raise its economic game to reap the benefits of the IMF’s assistance.
Shehbaz advocated national unity and sacrifice during a meeting with major businesspeople and industrialists at the Governor’s House in Lahore. He said this was necessary because the country needed to implement significant structural and economic reforms.
One day after the government hiked the average power tariff by Rs4.96 per unit for the fiscal year 2023-24, the prime minister met with the business community. With this change, customers will have to shoulder an extra Rs3,281 billion in costs.
The rate increase is being perceived as the government making good on its promise to the IMF to do so. The new national average cost is Rs29.78 per unit, up from Rs24.82 before the hike.
For the $3 billion Stand-By Arrangement, the IMF insisted on a price hike for power. Shehbaz warned the corporate world about the issue of circular debt. The tax load is too much, I’ll acknowledge that.
After speaking with IMF Managing Director Kristalina Georgieva by phone earlier this week, Shehbaz shared her concerns about the distrust that had been fostered in the past with the business community.
When asked by the IMF head if the interim administration would continue to honour the deal, he said that it would. The current government’s constitutional term ends on August 14, and he assured the IMF head that the temporary government would.
He stressed the importance of implementing severe structural and economic reforms as the only option. “We need to get the most out of the IMF deal and put that money towards economic growth and the well-being of the people.”
The prime minister has stated that the mistakes made by the previous Pakistan Tehreek-e-Insaf (PTI) government had harmed the national economy. It was “national interest” that was “put at stake for the sake of political interests,” he claimed.
Shehbaz promised the commercial sector that infrastructure will be built to support manufacturing and farming. However, he stressed the importance of the business community in boosting the economy.
The prime minister highlighted that “industrialists and business community would have to play their role even more actively for enhancing exports and stabilising the economy” given the current situation and the serious problems facing the country.
“We’re living in a system where business is run purely for rental profits. To take on new difficulties or incorporate cutting-edge technologies, “we are not ready,” he declared. As the report put it, “Government support and subsidies had not been materialised properly.”
Small and medium-sized businesses (SMEs), which form the backbone of the national economy, were another area of emphasis. He further argued that SMEs were particularly deserving of credit.
