As prices rise, so do tempers
So far whatever problems people were facing were being laid at the door of the PML(N) and PPP. As these problems persist after seven months of PTI rule and some have in fact intensified, it would be difficult for the government to cover up its own incompetence. All the more so as soon after being inducted into power, Prime Minister Imran Khan handpicked officials to head key financial institutions like the State Bank of Pakistan, the FBR, the Board of Investment, the SECP and the Finance Ministry. The fiscal deficit, originally targeted at 5.1 percent of GDP, is to cross 6.3 percent. Despite massive rupee devaluation, export figures don’t present a healthy picture. Revenue shortfall could reach Rs 485 billion this year, the highest under any government. While development spending has been cut there is a significant surge in defence and current expenditures, and subsidies to a number of export-oriented industries. Raising questions over economic fundamentals during the next two years, Standard & Poor’s has downgraded Pakistan’s long-term credit rating to ‘B-Negative’ from ‘B’.
The way the common man is going to be affected in days to come can be gauged from the free fall of the rupee that has led to a rise in inflation. The PTI government finally acknowledged that it is responsible for the inflated gas bills sent to 93 percent of gas consumers following a revision in gas slabs that led to public protests. It is still reluctant to reimburse billions of rupees to overcharged consumers. While the government meditates a further rise in the gas tariff, the Power Minister has warned that the electricity tariff would be gradually increased by over Rs 2 per unit. He has not ruled out minimal loadshedding in summer while clarifying that high loss feeders would face maximum load management.
People are likely to face more hardships after the budget catering to IMF demands is passed in July When in opposition in 2017, the PTI was in the forefront of protests against loadshedding in Karachi, Lahore and Peshawar, with the last becoming violent. This was not a good precedent. One expects the opposition to act more responsibly in case of any possible protests in months to come.
