ISLAMABAD: Amid Pakistan’s economic challenges, the federal government finds itself engaged in a delicate balancing act—striving to meet the demands of the International Monetary Fund (IMF) while simultaneously addressing the increasing public discontent due to inflated electricity bills and rising inflation.
Speaking to journalists in the capital on Thursday, Pakistan’s Caretaker Prime Minister Anwaarul Haq Kakar announced that the government intends to reveal its relief plan for inflated electricity bills within the next 48 hours. However, he strongly emphasized that the government would not deviate from its commitments to multi-financial institutions, including the IMF.
The premier said Pakistan will fulfill its agreements with multi-financial institutions under any circumstances.
This announcement comes against the backdrop of Pakistan’s ongoing economic challenges, including inflation, a depreciating rupee, and waning market confidence. Recent days have witnessed nationwide protests against exorbitant electricity bills.
The government has encountered difficulties in formulating relief strategies that maintain an equilibrium between averting the displeasure of the International Monetary Fund (IMF) and quelling public dissatisfaction. Addressing the issue of inflated electricity bills, the Prime Minister remarked that although the situation is challenging, the matter is being “amplified,” partly due to ongoing political campaigns by all parties.
He further said that it was incorrect to believe that the government was out to “suck the blood” of the populace and that it was blind to the issue.
Caretaker Finance Minister Shamshad Akhtar on Wednesday addressed senators and electricity consumers, urging them to “manage their expectations” due to the limited fiscal space that prevents substantial subsidies or relief measures.
In an interactive session with journalists, the Prime Minister acknowledged his awareness of the protests related to electricity bills. He clarified that the interim government does not harbor hidden agendas or grand ambitions. He rejected the notion that oppressive rulers are exploiting the vulnerable populace.
Prime Minister Kakar recalled the 1990s, when load shedding emerged as a significant challenge. Governments at the time entered contracts with independent power producers (IPPs) to augment power generation. However, the repercussions of these contracts, including additional surcharges, were not fully realized. He pointed out issues in transmission systems and bill recovery processes.
