Interim Finance Minister Shamshad Akhtar said on Wednesday that the country’s economic condition was “much worse than expected” as protests continued across Pakistan against rising electricity bills. He said that due to commitments made with the International Monetary Fund (IMF), there was no ‘fiscal space’ to provide subsidies to ease the burden on the people.
Pakistan received an important $3 billion loan from the IMF in June under strict conditions. These terms include hike in electricity tariff and phasing out of all subsidies.
According to a report by newspaper Dawn, the finance minister said in a meeting of the Senate (upper house) standing committee that the country’s economic situation is ‘much worse than expected’. He said that due to the commitments made with the International Monetary Fund, there is no ‘fiscal space’ to provide subsidies to ease the burden of the people.
Protests are taking place in various cities of Pakistan against the increased electricity bills and people are demanding relief.