ISLAMABAD: Following the government’s efforts to alleviate the country’s economic troubles, Finance Minister Miftah Ismail said on Monday that there are no plans to declare a financial emergency.
Ismail stated in a tweet that the nation was not in financial trouble since the price of fuel had been raised twice — to Rs209.86 — and that the price of petrol goods had also risen dramatically.
Without giving a specific date, the finance minister said that Prime Minister Shehbaz Sharif will unveil austerity measures to reduce government spending at some time.
The Prime Minister will at some point announce austerity measures to save government expenditures. But there is not going to be any declaration of financial emergency. Nor is there any financial emergency. After two increases in petrol prices, we are out of the financial crisis.
— Miftah Ismail (@MiftahIsmail) June 6, 2022
The government hiked the price of fuel by Rs60 per liter in order to restore economic stability and relaunch the stalled multi-billion dollar International Monetary Fund (IMF) initiative.
Furthermore, the National Electric Electricity Regulatory Authority (NEPRA) upped the basic power rate by Rs7.9078/kWh last week for the fiscal year 2022-23, putting the people under further inflationary pressure.
Last Friday, the Oil and Gas Regulatory Authority (OGRA) authorized a 45 percent rise in gas rates for the Sui Northern Gas Pipelines Limited (SNGPL), and a 44 percent increase for the Sui Southern Gas Company (SSGC).
Last month, the finance minister said that the government will strike a deal with the international money lender on a staff level by June, without naming a specific date.
Separately, the State Bank of Pakistan (SBP) said that the government and central bank were taking all necessary steps to safeguard the country’s macroeconomic stability.
The government’s recent painful choices, such as the removal of petroleum product subsidies, are anticipated to pave the way for a deal with the IMF and the release of the tranche, as well as financial help from other international organizations and friendly nations.
“We are convinced that these steps will alleviate the temporary stress caused by rising global commodity prices and geopolitical tensions, as well as reduce economic uncertainty,” the central bank stated.