Nothing wrong in getting IMF loan as last option
Decision of equitable loadshedding questioned
July 08
The Pakistan Economy Watch (PEW) on Monday said securing IMF loan was not a success unless the government ensures proper utilization of borrowed money to the satisfaction of all stakeholders.
Real test of the government will be to best utilize the money and fulfill promises with the international lender to improve economy and boost credibility, it said.
Pakistan was left with no option but to accept IMF conditions or face a default as the former government left Rs. 14.3 trillion of domestic loans, Rs. 500 billion circular debt, external financing requirements of $ 11.5 billion and budget deficit at 9 per cent, said Dr Murtaza Mughal, President PEW.
Pakistan would have been a developed country if if half of the money borrowed in past was utilized properly, he said adding that asses were expecting a good decision on taxing agricultural income to balance the taxation regime which hasn't happened.
Moreover, he said, many former governments ignored economical ways to secure energy and preferred the costly western solutions which has resulted in an energy mix where country is using 75 per cent of costly fuels and only 25 per cent of cheap solutions.
Dr Murtaza Mughal said that this policy hiked the power generation cost to Rs. 14 per unit in which Rs. 5 is given as subsidy which is simply unsustainable for an economically challenged country like Pakistan.
He warned that energy theft has touched Rs. 250 billion mark which will register increase if the government continued to ignore the issue.
Decision of equitable load-shedding across country should be revisited. The areas with high theft ratio theft should face more load-shedding while the consumers of the regions with minimum theft should enjoy better power supply, he opined.
Such a decision will reward honest consumers and push people to point towards power thieves which will improve overall situation, said Dr. Mughal.
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