Restoration
of the economy is definitely the biggest need of the country and the biggest
challenge for the government in the current situation. Decades of lavish
privileges of elites, corruption embedded in every sector, loans taken without
any concern for the future, unnecessary government spending, white elephants of
nationalized institutions, all these have reduced the national economy to a
ventilator. In order to save the country from bankruptcy, the financial support
of the International Monetary Fund and friendly countries has become an
inevitable compulsion, although the current rulers say that they are trying
their best to implement the IMF program which is in the final stages. The
national economy is not in need of external support.
However,
despite the assurances of our economic administrators in the meeting of the
management board of the institution after the agreement reached at the staff
level with the International Monetary Fund on July 12, the case of Pakistan was
not discussed in the August meetings. came on the agenda and so far no news of
joining the September schedule has come to light. Meanwhile, these reports have
come out that the IMF has objected to the subsidy given to provide cheap
electricity to the people in Punjab. and has demanded to withdraw it. However,
yesterday the spokesman of the Ministry of Finance in an interview has given a
satisfactory explanation that the negotiations with the IMF are now only on
filling the external financing gap and on the electricity bills of the Punjab
government. There is no problem with subsidy now. The spokesman of the Ministry
of Finance said that the IMF is satisfied with the rollover from friendly
countries, while there is no problem with the subsidy on the electricity bills
of the Punjab government.
Discussions
with commercial banks are in the final stage and a positive result is expected
soon. The spokesman said that all efforts are being made to get the commitment
from commercial banks soon. FBR is not talking to IMF about tax collections.
Finance Ministry and FBR are talking about improving tax collections. According
to another report, Pakistan has formally requested Standard Chartered Bank to
refinance a commercial loan ranging from $80 million to $1 billion to close its
financing gap, which is necessary to get approval from the IMF's executive
board. . Top government sources have said that on Pakistan's request, the bank
has expressed its willingness in principle to restore the line of credit for
Pakistan. Along with this, Federal Minister of Petroleum Mossadegh Malik has
also announced to the nation that there will be no increase in the price of gas
next winter and there is strong hope that there will be no need to buy spot LNG
cargoes.
The
Minister of Petroleum has also removed the concern at the national level due to
the news that Iran has claimed 18 billion dollars in damages in the
international court due to the lack of progress by Pakistan in the case of the
Iran-Pakistan gas pipeline. . Expressing his willingness to give an in-camera
briefing, he said that the $18 billion fine is not correct. In this regard,
there are factors of international sanctions. He also assured that the nation
will get good news soon on the Rekodic project. Economic This process of
rehabilitation is undoubtedly welcome, but the economy needs to be rid of the
blood-sucking IPPs, corruption and privileges of the elite.Abolition is also
indispensable to get rid of the economic crisis.
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