LAHORE: Prime Minister Shahbaz Sharif on Saturday explained in detail why the government had to hike base power tariff, saying around Rs5 per unit increase was made on the demand of the International Monetary Fund (IMF) but also to bring circular debt down.

“This is due to the circular debt and it is also the demand of the IMF. We have line losses and transmission losses. The billing system is in shambles. He said it is also true that the tax rates have been increased, but if the levied taxes are not paid, then additional taxes will have to be imposed,” he said.

The prime minister was addressing LCCI Executive Committee at the Governor’s House in Lahore. Punjab Governor Muhammad Baligh-ur-Rehman and Federal Finance Minister Ishaq Dar attended the meeting through zoom.

Base power tariff hiked by Rs4.96

LCCI President Kashif Anwar gave a detailed well-thought-out and well-tailored roadmap to expedite economic recovery. He said that alternative energy, agriculture, import substitution and broadening of tax base are path to progress.

LCCI Senior Vice President Zafar Mahmood Chaudhry, Vice President Adnan Khalid Butt, former LCCI presidents Mian Anjum Nisar, Sheikh Muhammad Asif, Mian Misbahur Rahman, Muhammad Ali Mian, Shahzad Ali Malik, Almas Haider, secretary Finance, secretary Commerce, secretary Industries, CCPO Lahore, DIG Operations Lahore, CEO PBIT, DG TDAP, DGTO, chairman FBR and LCCI Executive Committee Members were also present.

Prime Minister Shahbaz Sharif said that he has a deep attachment with the Lahore Chamber as he has served this organization as its president. He said that businessmen are facing a difficult situation but the government is utilizing all of its energies on improving the situation.

“I have thanked the managing director of IMF while US Secretary of State Antony Blinken has congratulated us on the approval of the IMF programme”, he said and added that the previous government tried to create a rift between US-Pakistan relations.

PM Shahbaz Sharif said that this government has worked day in, day out to create smooth relations with the United States. “During the last fifteen months, we have repaired our relations with the US and the efforts of Foreign Minister are also laudable. All this was possible through collective efforts,” he said.

The PM said that the real thing is to solve the problems of entrepreneurs and take the economy forward. Pakistan has not implemented the conditions of the IMF in the past, so it did ask for a guarantee from us. Now the country has received $ 2 billion from Saudi Arabia, $ 1 billion from the UAE, and $ 1.2 billion from the IMF.

He said that currently, our reserves have reached 14 billion dollar mark. China must be mentioned in all these cases. China has rolled over five billion dollars of Pakistan’s commercial debt in four months. “If China had not done this, we would have defaulted,” he said.

He said that this breathing space we have got is meant to reform and restructure. A country that was self-sufficient in jute, now imports cotton. Bangladesh’s textile exports have surpassed our exports. “The same factories, the same system is there as in Pakistan, but how did their exports become more than ours? He said that this is our collective failure.

The industry has become a rental income in Pakistan. We don’t want to compete. We have not introduced modern technology. We were supposed to spend on research,” the prime minister said.

“During my tenure as chief minister [of Punjab], I spent a hundred billion rupees only on farm-to-market roads, but there was no difference”, he added. He said that in the 1990s, Nawaz Sharif came up with an economic program which made a big difference.

The PM said that earning profit is the right of every entrepreneur but earning profit should not be the end of the story. According to the PM, the profit earned should lead to creation of new industrial units.

He said that the Special Investment Facilitation Council is a recovery plan. The secret of Pakistan’s development and prosperity lies in it. Revival of agriculture is the easiest task.

Federal Finance Minister Ishaq Dar, who attended the meeting through zoom, said that before the budget, he has detailed meetings with the President of Lahore Chamber Kashif Anwar and the budget was finalized in line with his suggestions.

He said borrowers cannot be choosers. The re-engagement of the IMF by the government was a tough decision. “I have been saying for the last 25 years that devaluation of currency is the mother of all evils. Due to devaluation we have to increase the policy rate which is now 22 percent,” he added. He said that the country needs private sector’s support in many things. We are running different models. It is hoped that our economy will grow six to seven percent in two years.

He said that if the PML-N wins after the general election, it would fully address the grievances of the business community. He said the government has realized that businesses cannot run successfully under a very high interest rate environment. “We will try to bring it down as well. He said that the government has set up a Central Monetary Unit to monitor state-owned enterprises,” he added.

LCCI President Kashif Anwar lauded the efforts of Prime Minister Shahbaz Sharif, Finance Minister Ishaq Dar that they have been painstakingly making to help the country attain economic self-reliance.

Copyright Business Recorder, 2023