Nawaz concerned over IMF's electric shock

PML-N supremo Nawaz Sharif on Monday raised concerns over the impending surge in electricity and gas prices under the directives of the International Monetary Fund (IMF), questioning the extent to which the people could bear such burdens.

Addressing a special meeting of the Punjab government alongside Punjab Chief Minister Maryam Nawaz Sharif, Nawaz Sharif stressed the pressing need to address the potential hike in utility prices imposed by the global lender.

Senior provincial ministers and officials were in attendance, including Marriyum Aurangzeb, Azma Bukhari, Bilal Yasin, Syed Ashiq, and Sania Ashiq, along with chief secretaries and other concerned authorities.

During the briefing, it was revealed that previous procurement methods subsidised wheat prices uniformly, benefiting both the impoverished and the rich alike.

However, mounting circular debts, now totalling Rs630 billion, posed a grave challenge to the government. If left unaddressed, experts warned the debt could soar to a staggering Rs1.1 trillion.

Meanwhile, the daily interest payment on loans alone amounted to a staggering 250 million, prompting the government to abolish general wheat subsidies.

The meeting resolved in principle to provide solar panels to farmers for tube wells in a move aimed at alleviating the burden of expensive electricity.

Nawaz Sharif reiterated the need to prioritise farmers' concerns, stressing that government funds should be dedicated to supporting agricultural initiatives. He also emphasised the importance of ensuring fair compensation for farmers' labour and shielding them from exploitation by middlemen.

Chief Minister Maryam Nawaz Sharif echoed these sentiments, stressing the importance of providing farmers with modern machinery and reviewing drip irrigation techniques.

She called for a comprehensive strategy to combat the mafia engaged in the sale of overpriced fertilisers to safeguard agricultural interests.

It is pertinent to note that Nawaz's coincide with the anticipated finalisation of a staff-level agreement. Reports suggested that Pakistan has pledged to implement timely escalations in electricity and gas tariffs, along with the elimination of tax privileges.

According to the reports, electricity rates are slated for another hike starting July 1st. Additionally, mechanisms will be established for periodic adjustments on a monthly, quarterly, and yearly basis to facilitate cost recovery.