Pakistan Rules Out Relief amidst Protests over Power Bill
The government of Pakistan has expressed its helplessness to the parliament in the face of inflated power costs, surging fuel prices and fast-rising inflation, risking multiple protests across the country.
Interim Finance Minister Shamshad Akhtar told members of Pakistan’s upper house of parliament on Wednesday that the country has no “fiscal space” to provide any immediate relief to the public.
She went on to warn there might be a further increase in tariffs.
Akhtar added that the government’s financial situation does not allow for the provision of subsidies to the public, which is burdened by nearly 30 percent inflation.
The country only managed to avert default in July when the International Monetary Fund (IMF) granted a nine-month-long, $3bn bailout package.
However, the conditions for the agreement mean that Pakistan pledged to undertake painful reforms that resulted in an inflationary shock to the public.
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As part of key IMF demands, the government was asked to remove subsidies in the power sector, hiking energy and fuel prices, and allowing a market-based currency exchange rate without.
Similar stories are being played out everywhere in the country, which is still reeling from the aftermath of last year’s devastating floods that caused losses of more than $30bn.
Trade organisations have called for protests over the weekend and many in the public are saying they have no idea how long they can manage to live with the increasing inflation.
Saqib Abbas, a 22-year-old tailor in Islamabad, is the eldest of four siblings. He told Al Jazeera that there are times when the siblings must decide whether to have a meal or save that money to buy medicine for their bedridden mother.
“All of us work different jobs, but it is never enough. Our previous month’s bill was over 15,000 rupees ($49), and this month it almost doubled,” he said.
“I am always angry and frustrated, but I don’t even know if protesting can help. My electricity bill won’t stop coming anyway. I don’t know what more can we do.”
artificially shoring up the local currency.
