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Introduction:
Prime Minister Shehbaz Sharif of Pakistan addressed the recent electricity tariff hike and emphasized the necessity of drastic structural and economic reforms to benefit from the International Monetary Fund (IMF) loan program. In a meeting with prominent businessmen and industrialists, the PM stressed the importance of national unity and sacrifices to initiate the much-needed reforms.
Electricity Tariff Hike and IMF Loan Conditions:
The government recently increased the average power tariff by Rs4.96 per unit for the financial year 2023-24, adding an additional burden of Rs3,281 billion on consumers. This increase fulfills the government’s commitment to the IMF to raise electricity rates as a condition of the $3 billion Stand-By Arrangement. The average national tariff has now risen from Rs24.82 per unit to Rs29.78 per unit.
Meeting with Business Community and IMF’s Reservations:
During a meeting with the business community, PM Shehbaz shared details of his telephonic conversation with IMF Managing Director Kristalina Georgieva. He acknowledged the past mistrust created and assured the IMF chief that the incumbent government would honor the agreement until August 14, after which the interim government would continue to fulfill its commitments.
Importance of Drastic Reforms:
The PM stressed that there was no alternative but to initiate drastic structural and economic reforms to address the challenges faced by the national economy. He attributed the damage to the wrong decisions made by the previous Pakistan Tehreek-e-Insaf (PTI) government, where national interests were compromised for political gains.
Federal Government Reduces Petroleum Prices
Role of Industrialists and Business Community:
PM Shehbaz assured the business community of providing facilities to industries and agriculture sectors. However, he urged industrialists and traders to actively play a pivotal role in improving the country’s economy. He emphasized the need for adopting modern technology, enhancing exports, and stabilizing the economy in the face of grave challenges.
Promoting Small and Medium Enterprises (SMEs):
Highlighting the importance of Small and Medium Enterprises (SMEs), the backbone of the national economy, the PM stated that this sector deserved more support and loans. Moreover, he called for proper materialization of government support and subsidies to foster the growth of SMEs in the country. Additionally, the PM emphasized the need for effective implementation of policies that would enhance the development of SMEs.
Conclusion:
Prime Minister Shehbaz Sharif’s emphasis on national unity and sacrifices to implement drastic structural and economic reforms comes in response to IMF loan conditions and the recent electricity tariff hike. The government aims to stabilize the economy and enhance prosperity by utilizing the IMF funds on economic development. The role of industrialists and the business community, as well as the promotion of SMEs, will be vital in achieving these goals and driving the country’s economic recovery.
