Caretaker Finance Minister Highlights Government's Commitment Amidst Challenging Economic Conditions

Caretaker Finance Minister Highlights Government's Commitment Amidst Challenging Economic Conditions

Dr. Shamshad Akhtar, serving as the Caretaker Finance Minister, has emphasized that the prevailing economic conditions do not allow for additional subsidies to be incorporated into the International Monetary Fund (IMF) agreements. This stance was conveyed by Dr. Akhtar during a media interaction following a Senate Standing Committee on Finance meeting. She highlighted the government's concern for the well-being of the impoverished population and reiterated the administration's determination to avert worsening the hardships faced by the vulnerable.

It was acknowledged by Dr. Akhtar that prior administrations had entered into binding agreements with the IMF, which inherently included provisions for subsidies. Consequently, she affirmed that these existing agreements preclude the addition of supplementary subsidies due to their predetermined nature within the IMF terms.

Furthermore, Dr. Akhtar emphasized the current administration's commitment to devising a comprehensive strategy to strengthen the country's economic well-being. She emphasized that the caretaker government's primary agenda revolves around achieving economic stability and implementing measures to enhance the overall economic conditions.

Among the noteworthy measures outlined by the minister is the initiative to stabilize the exchange rate between the national currency, the rupee, and the US dollar. This strategy is aimed at reducing volatility in the currency market, thereby fostering a more favorable environment for economic growth and development.

Dr. Akhtar also mentioned that the consideration of withdrawing facilities for the privileged class is underway, and a briefing on the economic situation will be provided to the committee after a week.

Expressing concern, Dr. Shamshad Akhtar warned that Pakistan's economic situation was worse than anticipated. Her remarks, delivered during a Senate Standing Committee on Finance meeting, underlined that the interim government had inherited the IMF program, making it non-negotiable. She stressed the considerable losses suffered by government institutions and highlighted the urgency of expediting the privatization process.

According to the finance minister, a substantial 70 percent of Pakistan's tax revenue was being allocated to debt relief, indicating the severity of the economic challenges the country is currently facing.