Days after the cash-strapped Pak govt announced higher tariffs and increased tax, Pakistanis have been taking to the streets in recent days to protest against record utility bills. They have been demanding govt to roll back the recent increase in the electricity tariff and abolish all taxes on electricity bills. Agonized people expressed their anger and disappointment over the ‘ill-fated’ governance.
The average Pakistani household is now allocating 50 pc of their expenditure on electricity, which was 15 to 20 pc compared to four years ago. Pakistan is embarking on a tricky path to economic recovery under a caretaker government after the $3 billion loan approved by the IMF.
Caretaker Prime Minister Anwaar-ul-Haq Kakar has promised relief,but his cabinet said slashing the bills would jeopardise a massive IMF loan.
Pakistan secured initial approval of a $3 billion loan program from the International Monetary Fund to address its short-term acute balance of payments crisis and avoid a potential default.
The global lender had put Pakistan under tough conditions to end energy subsidies and meet revenue targets for a $3bn loan in July aimed at reviving the nuclear-armed nation’s crumbling economy.