PM unveils his approach to economic austerity

  • Premier says the next IMF programme will be the last of Pakistan provided the reforms are strictly implemented
Updated 16 Jun, 2024

ISLAMABAD: The government has to end lavish expenditure and the elite class is required to sacrifice for the sake of the economy. In a televised address to the nation ostensibly at the completion of 100 days of the government, Prime Minister Shehbaz Sharif has maintained that the historic increase in the stock market at one point of 76,000 after the budget was clearly an indication of endorsement of the next fiscal year’s budget by the business community and traders.

He expressed that hope that the next International Monetary Fund (IMF) programme would be the last programme of Pakistan provided the reforms were strictly implemented.

He said that the government’s responsibility is to end lavish expenditure and the country’s economy demands sacrifice from the elite class and promised that wherever possible the government would reduce its expenditure.

Primary surplus, fiscal deficit, over-board austerity policy, and existential threats

The premier said that Public Works Department (PWD), one of the ministries that are infamous for corruption has been shut and a committee has been formed and promised to taken decision about all such ministries and departments that have nothing to do with public service but taxpayers’ billion of rupees are being spent on them.

He said that in the next 90 days, he would take solid decisions in this regard.

He also mentioned about his visit to China and added that Saudi Arabia and the UAE have shown commitments to investment in Pakistan. He said that to get benefit from this commitment a system has been devised to bring in this investment in agriculture, industry and information and technology.

The prime minister said that cruelty and barbarism happening in Palestine was never seen before in the recent human history as thousands of people including children have been martyred in Gaza and similar situation has been prevalent in Kashmir. He said that Pakistan after being saved from default is now gradually coming out from economic situation is moving towards development. However, this journey is not only difficult but also long and the entire nation’s eyes are on movement. Inflation has decreased to 12 per cent and increase rate has come down to 20 per cent, this would help investment and reduce debt. He said that 100 days of the government have been completed and petrol price has been reduced and Rs10.5 per liter benefit was passed on to the people and similarly, diesel prices have been reduced but this is still inadequate due to inflation. He said that expectations are that more relief to the people would get in the days ahead. He said that the government wanted to provide employment and skill education to the youth.

He said that to make exports agriculture and industrial goods cheaper, the government has reduced electricity price by Rs10.5 per unit.

Copyright Business Recorder, 2024

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