Prime Minister Shehbaz Sharif has launched a Rs50 billion plan that would offer relief of up to Rs7 per unit to approximately 25 million domestic users in the protected category for three months until September. The concession will allow up to 200 units a month for three months, benefiting around 94% of the total consumer base. The package addresses issues related to electricity bills and power sector reforms.
Economic Measures and Commitments
The federal government has scrapped a significant amount from its development budget to provide public relief, a move in line with previous government promises. The government has achieved fiscal space by taxing the elite class, expanding the tax net, closing non-performing entities, and plugging financial leakages. The prime minister praised the coalition government’s 16-month tenure for saving the country from default by prioritizing public service over politics. He criticized the previous administration for mismanaged decisions and financial losses caused by the PTI-led government.
IMF Programme and Solar Energy Agreement
The government of Balochistan is set to sign a three-year program with the International Monetary Fund (IMF) to provide relief for domestic power consumers. The federal and provincial governments have agreed to solarize 28,000 tube wells in the province, saving Rs80-90 billion annually. New taxes have been imposed on the real estate sector to generate Rs100 billion in the annual budget. The prime minister stressed the need for the elite class to contribute back to the country.
Conclusion
Shehbaz Sharif’s Rs50 billion relief package addresses the pressing issue of electricity bills and power sector reforms, benefiting 94% of the consumer base. This initiative is part of a broader strategy involving taxing the elite, expanding the tax net, and eliminating financial inefficiencies. The government’s agreement with the IMF and plan to solarize tube wells in Balochistan represent long-term economic stability and sustainability solutions. These actions prioritize the needs of the public and ensure fiscal responsibility.
Frequently Asked Questions (FAQs)
How did the government create fiscal headroom for the rescue package?
The government created budgetary room by taxing the wealthy, broadening the tax base, shutting non-performing businesses, and plugging financial leaks.
What has the federal government done to give public assistance through the development budget?
To bring relief to the people, the federal government has drastically lowered its development budget.
What comments did Prime Minister Shehbaz Sharif make on the coalition government’s tenure?
Prime Minister Shehbaz Sharif lauded the coalition government’s 16-month tenure for rescuing the country from insolvency by putting public service before politics. Read More