The incumbent government is mulling over all possible options to stay away from reaching out to the IMF
KARACHI: It is understandable that the incumbent government is mulling over all possible options to stay away from reaching out to the International Monetary Fund. Measures are being put in place on an urgent basis, but much like in the past, the prices of utilities has witnessed a hike — a 46% increase in gas tariff has been approved, and a 15 per cent rise in electricity tariff has been proposed.
These measures will likely take years to give favourable outcomes, but in the short run an inflationary cycle is likely to loom over, where increase in gas and electricity tariff will result in a rise in the prices of other goods and services.
The steps implemented offer less on their own, as in Pakistan previous governments too have kept up with the precedent of ending subsidies while substituting it with a price rise.
Imrana Yousaf
Published in The Express Tribune, September 6th, 2018.
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