Prior to the presentation of the budget for the fiscal year 2024 (FY24), the prime minister spoke to the federal cabinet earlier today. He advocated raising worker salaries at a time when people are suffering from inflation. Pensions should likewise be raised simultaneously.
The value of pension and monthly payment has decreased to about half as a result of currency appreciation, the prime minister remarked when explaining how inflation has affected the nation and the salaried class. To ensure our survival and answer the concerns of pensioners, we must raise pay.
He further stated that increasing salaries and pensions is necessary to combat the fact that the average person is being crushed by inflation.
He added that the Ukraine war caused a huge spike in commodity prices on the global market, forcing the government to pay billions more for purchasing goods. “We faced $30 billion losses due to the devastating floods of 2022,” he said.
The premier stated in an announcement concerning the International Monetary Fund (IMF) program that the current administration has complied with the IMF’s principal requirements. The IMF deal may now be finalized without any obstacles, so perhaps the agreement will be completed by the end of the month.
He claimed that after meeting with IMF Managing Director Kristalina Georgieva, Pakistan made a number of significant steps to fulfill the lender’s requirements.
The premier explained that the IMF board would examine Pakistan’s issue before the current month ended. He continued on to say that China had given enormous financial support, which had been very beneficial, and that Saudi Arabia and the UAE had helped make up the shortfall of the $3 billion IMF need. The prime minister insisted that Pakistan was “grateful” for the $3 billion in finance pledges from allies.
The current account deficit has improved in recent months, according to the prime minister, who called the $3.4 billion reduction “a big relief.”
He stated that the administration was aware of the challenges that the average person was facing during these trying times of rising pricing.
The yield of crops, which has increased twice or three times in many nations, has not much improved, he claimed. “Farmers have worked hard and have received better prices for their output.
Shehbaz continued by saying that Pakistan might generate billion-dollar exports if it invested in agricultural reforms and added value by constructing storage facilities.
The PM stated that while the economy must grow, it is important to keep in mind that political stability and economic growth go hand in hand everywhere. This is also true for Pakistan. He proceeded by saying that billions of dollars will be wasted if political instability persists. Political stability restoration is our main priority.
“Gas prices have gone down in the international market, which is expected to provide economic relief as Pakistan will get the commodity at relatively better prices,” he said in response to a question about the price of energy globally. Inflation, he continued, is a problem that affects everyone, not only Pakistanis. Foreign payments, he claimed, had put strain on the nation’s foreign exchange reserves.
A source told Reuters that the total amount that will be spent is anticipated to be 14.5 trillion rupees ($50.54 billion), with 1.8 trillion rupees going towards safety.
The coming budget will determine the future of Pakistan’s faltering economy as the country deals with a serious problem. The administration must appease the IMF in order to obtain much-needed bailout cash, while also getting ready for an upcoming general election in November. The country’s economic trajectory and political environment in the coming months will depend on how well the budget handles these challenges.
