A good news for government circles is that Pakistan has received assurances from China, Saudi Arabia and UAE to extend the loan period. Agreeing to the news published in the media this rollover will be for three years but will be done afresh every year.
The IMF has also been informed about the assurances of the three countries. In this regard important progress has been made on the matter of approval of the 7 billion dollar loan program between Pakistan and the IMF by the Executive Board meeting of the International Monetary Fund.
According to the Ministry of Finance, Pakistan has extended the loan period from China, Saudi Arabia and UAE I have received assurances of extension. The IMF has also been informed about the assurances of the three countries, while Pakistan is also waiting to receive more loans from the IMF, after which enough money will come in the treasury to meet the government expenses and allowances easily.
On other hand there is no guarantee that the conditions of the citizens will be better after getting more loans. In fact the loans are being paid off by masses thus the entire burden of which is falling on the public and they are having to pay fifty to sixty percent more for electricity alone. The finance minister said that China, Saudi Arabia and the UAE have assured a one-year extension of the loan period.
Friendly countries have to pay 12 billion dollars of bilateral loans this year, in which Pakistan is responsible. Saudi Arabia owes 5 billion, China 4 billion and United Arab Emirates 3 billion dollars. The finance minister said that Pakistan is also determined to fill the financing gap of 3 to 5 billion dollars in 3 years. Loan relief has also been requested for power plants. Muhammad Aurangzeb said that the meeting of the IMF Executive Board is expected at the end of this month, in which the IMF Board has a 37-month loan program of 7 billion dollars for Pakistan. A lot of claims are being made by Finance Minister Muhammad Aurangzeb that he is reducing his expenses, but with the news of distribution of Rs 24 million. That money is only based on verbal deposits. According to a byline story uploaded on a website, this revelation is tantamount to rubbing salt in the wounds of the people who are fed up with inflation and government taxes, as the irony is that the said honorarium was not included in the salaries so as not to have to pay income tax. The report of the Auditor General of Pakistan revealed that during the financial year 2022-23, the Finance Division spent Rs24 million. The report has recommended to withdraw this amount.
In fact after the above report came out, the claims of the federal government and the finance minister to bring reformers have become invalid. So all the expenses including the finance department have increased which also includes the increase in salaries and allowances of government employees and members of the assembly.
On the contrary no such steps have been taken by the government for the people, keeping in mind that it can be said that the conditions of the people will start improving in the coming months or years. The government has once again decided to borrow for debt and has pledged the nation to the International Monetary Fund (IMF) from which no government official has any guarantee that there will be some better news in the coming decade.
Therefore it is necessary that Prime Minister Mian Shehbaz Sharif announces a major reform by taking practical measures to end inflation, including hugely reduced electricity and gas bills, which will send a wave of happiness among the citizens and protesters can return to their homes. Lest there be a time like Bangladesh, our rulers will have no way to save their chairs and the country will become more chaotic. Therefore to avoid such situations, the top leadership should must connect to solve these problems.
