Expectations of the caretaker economic team are 240 million
KARACHI: Let’s be clear and concise about what to expect now that talk of early elections has subsided and a caretaker administration has taken office as a result of the vote of no-confidence movement.
It is obvious that the transitional period before the following elections will easily go longer than five to six months. The competence—or lack thereof—of every month matters in an economy as vulnerable as ours. Complacency has no place in the present.
A powerful rectangle is taking shape. The much-heralded Special Investment Facilitation Council (SIFC) is led by a highly respected central banker (the only female member of the government), a seasoned bureaucrat who can negotiate complexities, the creator of the energy dossier against IPPs, and an experienced planning commissioner.
Speculators are getting excited again at the rupee’s initial Therefore, upholding promises loss versus the USD. If stockpiling has resumed, there needs to be a loud, obvious warning that this is unacceptable.
Under the terms of the IMF bailout, valuable funds must not be wasted on the rupee’s defense and must instead be used to buy up market shares and increase net foreign reserves. Therefore, upholding promises of financial restraint, relying on a reliable currency rate set by the market, and winning the war against inflation are battles that must be fought.
Direct cash transfers should be implemented to close the gap since the poorest have been receiving subsidized bills for an excessive amount of time. The majority of Pakistan is still on LPG cylinders. Similar to electricity, full tax, margin, and incidental recovery would also need to be collected from consumers in the price of gasoline and diesel. Despite the good intentions, these difficult decisions must be made right now.
Published in EDP BLOGS on August 21,2023.
