The protests over the rising inflated electricity bills show no signs of abating. The government is unable to provide any relief – an interim setup ever more so with limited powers. These decisions will have to be made by the IMF or else we risk losing the bailout programme.
The interim prime minister held two days of consultations with the energy ministry on proposals to provide relief but could reach a decision. He summoned the cabinet meeting which came with a suggestion to allow paying the bills in installments. Eventually, the government contacted the IMF to discuss the provision of relief as the situation could escalate. However, the global lender seemed uninterested and has asked to provide the relief proposals in writing before a decision is made. The IMF has rejected the proposal by the federal cabinet to pay the bills in installments spread over six months.
Caretaker Finance Minister Dr Shamshad Akhtar is frustrated over the situation and said the economic crisis is worse than anticipated. She says the economy is her first priority, not the IMF. However, the minister ruled out providing subsidies for the power sector. This has been interpreted as such that the government’s hands are tied and it cannot provide relief to consumers from excessive bills. The finance minister said the interim setup had inherited the IMF deal and was committed to fulfilling it.
The situation remains worse as Pakistan is plagued by the rising cost of living and exorbitant electricity prices that have forced residents to take to the streets across the country. Traders have announced a countrywide strike while residents have refused to pay bills and unleashed their frustration on power utility staff.
The government has failed to come up with any relief measures as it tries to strike a balance between risking the IMF deal and earning the wrath of the public. The cabinet expressed helplessness on how to address the issue unless the IMF cleared it. Even in the case of installments, the government will have to get prior permission from the IMF.
The previous government has placed the country on a platter to the IMF. All economic decisions will have to be taken or approved by the IMF now. The masses should not expect any relief. The next elected government will also face the same trouble in improving the economy. Although the interim government has limited powers, it should take measures to shift the burden before the situation worsens.
