ISLAMABAD: As the International Monetary Fund (IMF) mission chief toPakistan is arriving in Islamabad today (Tuesday), the PakistanTehreek-e-Insaf (PTI) government has been unable to implement reforms intwo key areas – increase in revenue collection and redressal of powersector issues.
The government had announced two mini-budgets with an aim to address thechallenges of current account deficit and to increase economic growth byproving a relief to the industry.
According to sources, the Federal Board of Revenue’s shortfall hasincreased to Rs233 billion during the first eight months of the currentfiscal year and the tax department officials have projected that if thesame situation persists, the revenue shortfall would reach Rs485 billion,the highest shortfall under any government.
In addition, the government increased the gas prices by up to 143pc,electricity by up to Rs1.70. Reportedly, Sui Northern Gas Pipeline Limitedand Sui Southern Gas Pipeline Limited has asked the government to increasethe rates up to 145pc from the next fiscal year, which would surelyincrease the burden on the masses.
The incumbent government has also been facing pressure on the exchange rateflexibility and monetary policy tightening. The State Bank of Pakistandepreciated the rupee against the dollar by up to 18pc. Similarly, interestrate increased cumulatively by 275bps since December 2018.
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The lending organization had also asked Pakistan to further strengthensocial protection through the Benazir Income Support Programme in order toprotect the more vulnerable segments of society.
The government has recently nominated the board members ofSarmaya-e-Pakistan from the private sector with an aim to reform 193 publicsector enterprises, which were costing the national exchanger in billions.
