ISLAMABAD: August 30,2023: The caretaker government on Wednesday conceded that it has no options of providing subsidies as Pakistan’s economy was even in worse shape than anticipated.
Caretaker Finance minister, Dr Shamshad Akhtar, came with an open mind during a meeting of the senate standing committee on Finance here. Shamshad Akhtar while briefing the committee on the economic situation of the country said “The economic condition of Pakistan was worse than anticipated and in such a situation the caretaker government has no option of proving any subsidy to any sector”.
In the past , Pakistan’s all key sectors including industrial and export sectors were living on subsidies . This culture of enjoying subsidies without earning proportionate foreign exchange made Pakistan’s economy bleed. Even when Shamshad Akhtar came up with a flat face to disown the culture of subsidies in the meeting of the Senate standing committee on Finance , the employees of power distribution companies are enjoying free electricity of worth Rs 672 billion. This kind of treatment of providing free electricity to the employees of distribution companies and other high -ups falls within the culture of subsidies. Caretaker government of Anwaarul Haq is shying to grant any relief to the consumers on inflated bills issued for the month of July, but it so for ,has not picked -up courage to delete the system of free electricity for employees of power distribution companies.
Shamshad Akhtar also informed the committee that Pakistan has signed an agreement with the International Monetary Fund (IMF) and its binding on the caretakers to functions within the conditionalities agreed upon with IMF by the previous government.
She told the committee that less inflows and more outflows were a cause of depreciation of the rupee. She said the caretaker government has limited powers and time and it will function within given time and powers.
Dr Shamshad Akhtar’s statement before the Senate standing committee on Finance is a hard truth and at the same time it shows the caretakers’ helplessness . The caretaker government has failed to find any relief for the power consumers who are up in the arms against inflated bills of July.
