Dr. Shamshad Akhtar, serving as the Caretaker Finance Minister, hasemphasized that the prevailing economic conditions do not allow foradditional subsidies to be incorporated into the International MonetaryFund (IMF) agreements. This stance was conveyed by Dr. Akhtar during amedia interaction following a Senate Standing Committee on Finance meeting.She highlighted the government’s concern for the well-being of theimpoverished population and reiterated the administration’s determinationto avert worsening the hardships faced by the vulnerable.
It was acknowledged by Dr. Akhtar that prior administrations had enteredinto binding agreements with the IMF, which inherently included provisionsfor subsidies. Consequently, she affirmed that these existing agreementspreclude the addition of supplementary subsidies due to their predeterminednature within the IMF terms.
Furthermore, Dr. Akhtar emphasized the current administration’s commitmentto devising a comprehensive strategy to strengthen the country’s economicwell-being. She emphasized that the caretaker government’s primary agendarevolves around achieving economic stability and implementing measures toenhance the overall economic conditions.
Among the noteworthy measures outlined by the minister is the initiativeto stabilize the exchange rate between the national currency, the rupee,and the US dollar. This strategy is aimed at reducing volatility in thecurrency market, thereby fostering a more favorable environment foreconomic growth and development.
Dr. Akhtar also mentioned that the consideration of withdrawing facilitiesfor the privileged class is underway, and a briefing on the economicsituation will be provided to the committee after a week.
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Expressing concern, Dr. Shamshad Akhtar warned that Pakistan’s economicsituation was worse than anticipated. Her remarks, delivered during aSenate Standing Committee on Finance meeting, underlined that the interimgovernment had inherited the IMF program, making it non-negotiable. Shestressed the considerable losses suffered by government institutions andhighlighted the urgency of expediting the privatization process.
According to the finance minister, a substantial 70 percent of Pakistan’stax revenue was being allocated to debt relief, indicating the severity ofthe economic challenges the country is currently facing.