Pakistan amidst a polycrisis

The caretaker government in Pakistan must seek approval from the International Monetary Fund (IMF) before providing any relief in electricity bills, as the country needs to maintain its IMF agreement to address its balance-of-payments challenges and regain the trust of investors, which is crucial for stabilizing the value of the rupee and preventing further depreciation. The depreciation of the rupee has significant implications for the electricity sector, leading to higher fuel import bills and capacity payment charges, resulting in higher electricity bills for consumers. The government relies on electricity bills to generate revenue through taxes and surcharges, exacerbating the financial burden on consumers. To address these challenges, the caretaker government should focus on enhancing revenue mobilization, reducing expenditures, and improving the inflow of dollars through exports and remittances. Additionally, the government should consider privatizing loss-making public-sector enterprises and reducing inefficiencies in the power system to lower the unit cost of electricity. The government should also secure pledges for flood rehabilitation and disaster preparedness projects to access funds from international financial institutions.

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8/26/2023

IMF’s nod essential for giving relief in electricity bills: Miftah Ismail

Former finance minister Miftah Ismail reveals that the caretaker government in Pakistan must seek permission from the International Monetary Fund (IMF) before giving relief to consumers facing inflated electricity bills, and urges political leadership to come up with a strategy to collect taxes from the rich.

8/30/2023

Govt seeks IMF nod for relief in electricity bills as protests continue unabated

The Pakistani government is seeking approval from the International Monetary Fund (IMF) before announcing any immediate relief for consumers protesting against inflated electricity bills, with relief likely to be provided to those using up to 400 units per month for August and September.

9/1/2023

State must act against dollar speculators, says Ishaq Dar

Former finance minister Ishaq Dar believes that a few speculators are responsible for the fluctuation and rise of the US dollar against the Pakistani rupee and that the government must take action against them to prevent them from holding the economy hostage. He also states that there is no quick fix to any problem, and emphasizes the need for the revival of effective policies and time to reverse the damage caused to Pakistan's economy. Additionally, Dar criticizes the policies of the Pakistan Tehreek-e-Insaf (PTI) government and expresses confidence in the ability of the Pakistan Muslim League-Nawaz (PML-N) to fix the economy if given a fresh and full mandate. He also highlights the complexities of the rise in electricity prices in the country.

9/3/2023

Inflated electricity bills: PM's 48-hour deadline to announce relief expires as IMF nod awaited

The International Monetary Fund (IMF) has not granted assent to Pakistan's request for deferment of electricity bills, leading to a failure to provide relief to power consumers within the stipulated 48-hour deadline given by the caretaker Prime Minister.

9/4/2023

‘Consumers using up to 300 units to get Rs3,000 relief in power bills’

The caretaker government in Pakistan plans to provide relief to power consumers, with a reduction of Rs13,000 for those with bills ranging from Rs60,000 to Rs70,000, amid nationwide protests over increased electricity bills; talks between the government and the IMF are underway on the matter.

9/8/2023

Pakistan's Interim Government Focuses on Reviving Economy and Fulfilling IMF Agreements

Pakistan's interim government is prioritizing economic revival and fulfilling international obligations, including agreements with the International Monetary Fund (IMF), to address the stagnant economy and financial issues. They aim to improve the overall business and investment environment, increase inflow of dollars from multilateral institutions, and reduce expenditures while upholding international agreements.

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Posted 9/5/2023, 4:06:00 AM