KARACHI: Pakistan’s Ministry of Energy has been contemplating hiking energy prices to meet the International Monetary Fund (IMF) requirements. Decisions were also being made as part of the “energy conservation policy” for the closure of all businesses by 8 pm and closure of wedding halls by 10 pm. The Government of Pakistan is actively seeking policy changes so that there is minimum further delay in the ninth review of Pakistan’s economic performance under a 36-month program supported by an Extended Fund Facility arrangement.
President of the Employer’s federation of Pakistan, Ismail Suttar stated, “The IMF continues to put forth conditions that are disastrous to Pakistan’s industrial community. Amid devastation due to massive floods, surging inflation and an economic crisis, the IMF must make concessions and show leniency in conditions put forth. Increasing energy prices and taxes will damage Pakistan’s already struggling business community. The IMF in collaboration with the GOP should put forth feasible conditions that enhance Pakistan’s economic standing.”
He said that the government should focus on debt restructuring which will lead to increased confidence in Pakistan’s economy. Inflated costs of energy will only lead to a closure of more businesses thereby harming the economy. Government expenditure should be limited and policies for effective collection of tax and proper distribution of energy should be prioritized to fill in the funding gap. Strict implementation of anti-money laundering laws. A strong check and balance is needed against the illegal use of electricity in the form of theft. Furthermore, the IMF and GOP should focus on long term solutions such as a move to more renewable forms of electricity.
Suttar was of the opinion that EFP believes that the government will have to take a stand against some stringent conditions set by the IMF. Instead, other routes of action should be formally discussed and an agreement can be reached without causing harm to Pakistan’s business community. The Global Lending giant must operate in good faith and take into account the ongoing economic crisis Pakistan is facing.
