PML-N, LAHORE Shehbaz Sharif, the president of Pakistan and the leader of the Opposition in the National Assembly, stated on Tuesday that the government’s harsh policies were crushing the people and the economy.
The statement was made in response to the National Electrical Power Regulatory Authority’s (Nepra) announcement of a nearly Rs4 increase in the power bill for Karachi residents.
On consideration of the fuel charges adjustment for September, the Nepra announced another increase in power prices for Karachi, increasing the rate by Rs3.75 per unit.
“Under this awful system, the rise in electricity tariffs, inflation, unemployment, and the enormity of economic catastrophe will only grow,” Shehbaz added.
He referred to the increase in taxes and tariffs on power, petrol, and gas as “slavery” by the International Monetary Fund (IMF), indicating that his party opposes the PTI-led government’s policies and tactics.
Shehbaz pointed out that the government has not passed on the benefits of a decline in global oil prices to Pakistanis. The implementation of a petroleum development fee and a sales tax, on the other hand, has insulted the poor, he continued.
According to the Opposition Leader, the government is planning new financial measures totaling Rs800 billion, which will put a lot of strain on the people and the economy.
He described the Rs250 billion drop in development spending and the Rs550 billion in additional taxes as “total oppression” for the people, adding that it is akin to “burning Pakistan’s economy to ashes,” especially at a time when the people are already being suffocated by inflation.
According to Shehbaz, Pakistan’s external account position is already precarious, and these moves will exacerbate the situation. Economists are asking why the current government failed to properly negotiate a deal with the IMF in the national interest, he said.
Shehbaz said that the IMF wouldn’t let the PTI administration borrow more than 2% of GDP in a single fiscal year. He believes that the only way out of this dilemma is for GDP to expand at a faster and more consistent rate.
He also cautioned the administration against the “hot money” plan, which he claimed had already had negative consequences for the economy. The interest rate was 5.7 percent and GDP was 5.8 percent after finishing the IMF program in 2017.
