Caretaker Govt Empowered to Make Key Economic Decisions and Reforms, Says Information Minister

 

Information Minister Murtaza Solangi reaffirmed the caretaker government’s authority to make significant economic decisions and enact reforms during a press conference of key ministers of the interim government at a meeting of the Special Investment Facilitation Council (SIFC).

The press conference featured caretaker Finance Minister Shamshad Akhtar, Commerce Minister Gohar Ejaz, and Power Minister Mohammad Ali.

Solangi stated that the caretaker government has the mandate for policy intervention, as the previous PDM-led government’s joint session had passed the Election (Amendment) Bill, 2023. This bill granted the interim setup additional powers to make important economic decisions.

The SIFC meeting focused on reducing government expenditures, addressing the circular debt issue, removing obstacles to foreign investment, and improving the performance of state-owned enterprises (SOEs), Solangi explained.

Finance Minister Shamshad Akhtar outlined proposals from her ministry, including the creation of a central monitoring unit and a policy for SOEs. She also mentioned discussions about removing import restrictions to expand the economy.

Regarding depleting foreign exchange reserves, Akhtar stated that the government is in contact with multilateral lenders such as the World Bank and Asian Development Bank. She mentioned the upcoming mission of the International Monetary Fund (IMF) in November, which could lead to fresh dollar inflows of around $6 billion for the country.

Commerce Minister Gohar Ejaz informed that proposals were discussed to increase the country’s exports and generate more jobs. He emphasized the importance of ensuring an adequate supply of raw materials and curbing smuggling to revive industries. Making power prices competitive for industries was also discussed.

Energy Minister Mohammad Ali discussed measures to combat electricity theft and introduce governance reforms in distribution companies (Discos). The meeting also addressed reducing capacity charges for power producers. The interim government is in talks with the IMF regarding the dividend plug-in back scheme to address the growing debt crisis.

The caretaker government is actively working on multiple fronts to address economic challenges and stimulate growth in Pakistan’s economy.