IMF-driven tariff hikes 'drove up inflation'

ISLAMABAD:

The hike in electricity and gas tariffs under the International Monetary Fund (IMF) program is a major factor contributing to overall inflation in the country. This was revealed by the Federal Bureau of Statistics (FBS) in the National Assembly.

During a briefing to the lower house on the rising cost of living, FBS officials disclosed that the government increased the gas tariff by 520 percent in November 2023, with another hike of 319 percent planned for February 2024. Similarly, electricity tariffs were raised by 35 percent in November 2023 and 75 percent in February 2024. These significant increases in electricity and gas tariffs have been key drivers of the rising cost of living in the country.

The FPB officials further told the house that sugar price increased by 53.5 percent and palm oil price rose by 61 percent during the last 5 years in the country. Besides, the rates of soybean oil, wheat and edible oil swelled by 35 percent.

Meanwhile, the finance ministry revealed in the lower house that the ministry received Rs338 billion from mobile phone users during the last five years.

Expressing his views on a point of objection, Leader of Opposition Omar Ayub said the government's claims of containing inflation are hollow. He challenged that the inflation rate rose in the country despite government's claims of containing it.

He said the government is not taking any practical steps to improve the country's economy. Omar Ayub claimed the government failed to woo foreign investors, adding the economy cannot improve without the rule of law.