UNMINDFUL of the ground realities, the International Monetary Fund (IMF) continues with its intrusive posture that stirs the soul of the common man in the country. In the latest move, it has asked the Government to hike prices of gas and electricity for consumers, giving free hand to National Electric Power Regulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA) to decide on the prices. It is also urging the authorities for tax reforms and collection of more than Rs 1,000 billion in taxes during first quarter of the current financial year.
There is every possibility that the Government would ultimately have to succumb before the pressure of the IMF and raise prices of both the electricity and gas. This is because the Government is keen to continue with the IMF package that was halted due to the situation arising out of Covid-19. However, it is also a foregone conclusion that such a move would put enormous additional burden on the masses. Prices of both electricity and gas are already on the higher side and there is realization of this fact on the part of the top leadership of the Government. Prime Minister Imran Khan and his relevant ministers have been making assurances to the people to bring down the tariff and provide relief to the consumers. There is also another aspect of the problem – the economy has started showing positive trends on reopening of different sectors after suspension of activities for months due to Coronavirus. Any increase in electricity and gas tariff would be counter-productive to growth and also consumers are not in a position to absorb the shock. Similarly, the pressure to collect more than Rs 1,000 billion in taxes would also mean aggressive policy for the purpose, which would not be advisable in the post-Covid-19 period.
