ISLAMABAD: Pakistan’s interim Finance Minister Dr. Shamshad Akhtar on Wednesday warned that the country’s economic situation was “worse than anticipated” adding that the federal government did not have “fiscal space” to provide subsidies to the masses.
The Finance Minister’s remarks, during a meeting of the Senate’s Standing Committee on Finance, asserted that the caretaker government had “inherited” the International Monetary Fund (IMF) program, hence, it was “non-negotiable”.
Dr. Shamshad Akhtar said that dependence on imports and the political uncertainty in the country are the main causes of the “devastated” economy.
The statement comes as the country remains plagued by the inflated living cost, particularly high electricity prices that have forced masses to take to stage protests across the country. So far, the government has failed to present any relief measures as it is making efforts to strike a balance between avoiding drawing the IMF’s ire and causing more citizens to blow a fuse.
Speaking in a meeting of the Standing Committee of Finance chaired by Senator Saleem Mandviwalla, the finance minister said that the Pakistani Rupee was under pressure due to low inflow and increased outflow of the US dollar.
Highlighting the current economic situation of the country, Akhtar also expressed her regret for accepting the responsibility as the caretaker finance minister, saying, “sometimes I regret the decision of assuming the charge of the ministry”.
She said that if Pakistan withdrew the IMF program, the dollar inflow into the country would be stopped, and the situation would be worsened.
The minister urged for taking other measures, except the IMF program, to stabilize the country. She said that Pakistan has also been indebted with loans other than IMF, and it needs a comprehensive approach to deal with it.
She said that the government could not provide subsidies to the people as it did not have a fiscal space. Pakistan was totally dependent on imported oil, and its burden had been shifted only towards the public.
Finance Minister Suggests Privatization
She also called to expedite the privatization process of the public institutions, saying the easy targets in this process should be achieved soon.
