Pakistan is currently grappling with a severe economic crisis characterized by escalating electricity and fuel prices and a depreciating foreign exchange rate, resulting in widespread public discontent. The public and business communities are vociferously protesting against the surging electricity bills, which are anticipated to escalate further due to the persistent devaluation of the national currency and the elevated cost of imported fuel.
This dire economic scenario has been exacerbated by a protracted impending sovereign default situation, mainly stemming from the delay in the International Monetary Fund (IMF) review and the looming risk of non-completion of the IMF program, a concern that has persisted for the past several months.
Despite the approval of a substantial stand-by arrangement (SBA) of US$ 3 billion in July 2023, the economic challenges afflicting the nation have not been alleviated. Because, the IMF assistance always comes with some conditionalities, performance indicators and targets. The conditions attached to the IMF assistance have, in many ways, exacerbated the situation, making it arduous for the current interim as well as the outgoing government to provide any form of financial relief or subsidies. This situation necessitates a comprehensive re-evaluation of the economic policies and strategies. Read Full Op-Ed
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