ISLAMABAD: Caretaker Finance Minister Dr Shamshad Akhtar on Wednesday said there is no space for additional subsidies under the ongoing International Monetary Fund (IMF) program.
Speaking to the media following a meeting of the Senate Standing Committee on Finance on Wednesday, she said that the current economic circumstances leave no room for additional subsidies within the IMF agreements.
Dr Akhtar communicated the government’s sensitivity toward the welfare of the country’s poor, stressing that the administration is resolute in its commitment to prevent any exacerbation of hardships faced by the vulnerable.
The caretaker finance minister acknowledged that the previous governments had entered into binding agreements with the IMF, elucidating that these agreements inherently encompassed provisions for subsidies.
Consequently, she affirmed that the existing agreements do not permit the inclusion of supplementary subsidies, due to their predetermined nature within the terms established with the IMF.
Dr Akhtar said that the current administration is dedicated to crafting a comprehensive strategy aimed at bolstering the nation’s economic health.
She underscored that the caretaker government’s agenda revolves around achieving economic stability and implementing measures conducive to the enhancement of overall economic conditions.
One of the significant measures outlined by the caretaker finance minister involves efforts to stabilise the exchange rate between the national currency, the rupee, and the US dollar. This strategy aims to mitigate volatility in the currency market, ultimately fostering a more conducive environment for economic growth and development.
Earlier, briefing the Senate Standing committee on Finance and Revenue held under the chair of Senator Saleem Mandviwalla in Chair, Dr shamshad lamented that the economic situation of the country was even graver than expected.
Every conceivable effort had been directed towards undermining the economy. “Unfortunately, no effort has been spared to destroy the economy,” she added.
The Senate Committee expressed concerns over the growing dollar instability, unprecedented electricity cost and a 22% interest rate that are making it challenging for current businesses to survive and thrive.
Senator Mohsin Aziz highlighted the issue of’ Capacity Payment’ which currently stands at Rs.1.2 trillion, being paid to IPP’s, and advised that the government should reconsider its agreement with them.
Meanwhile, another member of committee Senator Sherry Rehman drew attention to the plight of the public, especially in relation to electricity bills. She underscored how these bills have become an unbearable burden for citizens, many of whom struggle to reconcile bills that often surpass their meager salaries.
Caretaker Finance Minister Shamshad Akhtar stated that Country’s economy needs a lot of fixing and the ministry is tirelessly working on multilateral fronts to deliver the task.
She stressed that mobilisation of local resources and structural reforms in State Owned Enterprises is the need of the hour and it will bear fruit for the struggling economy.
The Caretaker Finance Minister decided to provide a comprehensive briefing on the Country’s Economy to Standing Committee in the upcoming week.
The Committee deliberated on the Private Member Bill titled “The State Bank of Pakistan (Amendment) Bill,2023”.
Senator Mushtaq Ahmed, mover of the bill, apprised that the purpose of the bill is to curtail the unbridled powers of the State Bank of Pakistan and enable the government to borrow money from the SBP However, Dr. Inayat Hussain, Deputy Governor SBP, argued that the amendment made in the previous year was aligned with the ongoing IMF program and aimed to instill fiscal responsibility in government operations.
The Committee deferred the deliberations on the bill till the next meeting.
Furthermore, the senate body was briefed on Azad Jammu and Kashmir Budget.
Chaudhry Anwarul Haq, the Prime Minister of AJK, highlighted that AJK produces approximately 2600 MW of electricity each year, with a consumption of 350 MW.
He appealed to the government to provide electricity to the people of AJK at production costs and requested the allocation of the share mentioned in the Federal Divisible Share Pool.The Committee recommended the government to address the reservations expressed by AJK Prime Minister.
In addition to that, the committee discussed the Point of Public Importance raised by Senator Hilal ur Rehman regarding the non payment of compensation to the affectees of Mohmand dam.
Senator Hilal ur Rehman informed that Affectees have not been paid according to the rates specified in the project’s PC-I (project cost estimation).District Administration Mohmand stated that rates have been finalised through negotiations with affectees. The Committee deferred the deliberations on the matter till the next meeting.
very hard to survive in these circumstances