Economist Shahbaz Rana gives inside news regarding IMF deal
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00:00 Pakistani Hukam and IMF staff level, they had a meeting last night, in which the Pakistani
00:07 Hukam put forward a proposal that they want to do the electricity bill together in August.
00:14 And if there is a gap, then the power distribution companies will have a loss of revenue.
00:21 So to compensate for that, we will take loans from banks, and the banks will take loans from the IMF.
00:28 So we will take loans from the banks to compensate for the loss of revenue.
00:33 So we will take loans from the banks to compensate for the loss of revenue.
00:40 So we will take loans from the banks to compensate for the loss of revenue.
00:44 We will take loans from the banks to pay these power companies, and then those payments will go to the independent power producers.
00:51 And we will pay the interest on those loans by improving our recoveries.
00:56 So this proposal was put forward by the IMF yesterday, which is also published in our Khabar Bihar Express Tribune today.
01:01 But the IMF did not give permission for this last night, nor did it refuse.
01:05 They said that we will think about it further and tell you.
01:10 Definitely they will do their consultations at the highest level, and then they will respond back to Pakistan.
01:15 Today, the Senate Standing Committee on Finance meeting, in which Dr. Shamshad Akhtar Sahiba's first public appearance was held,
01:22 after taking oath of office, and her first policy statement was also presented for the first time in more than two weeks.
01:29 So I will give you a reaction to that.
01:33 When it came to the situation of the people, what will you do about the burden on them,
01:40 can there be any substantial thing or not?
01:43 She was very much categorical that we do not have any fiscal space, do not expect anything from us.
01:50 But when she was told that you will withdraw the free electricity of Ashrafiya,
01:59 she said that this is not our mandate, this is not our job, how will we do it, this is our policy.
02:04 So when the meeting ended, she came out of the committee room,
02:08 I asked her that you took a big plane and you said that you do not have fiscal space,
02:14 but do you have the courage to withdraw the subsidies of all the powerful people,
02:20 not only subsidies but free electricity, in which there is our judiciary, our armed forces,
02:25 our power distribution companies officials, she replied that we cannot do it, it is not our mandate.
02:30 So one thing became very clear, where there is no voice, keep doing it, there are international agreements.
02:35 And where there is a voice, someone's pressure, or something that if you give back someone's facility,
02:42 then they will be in trouble, and if they are in trouble, then they will be in trouble, then they will not do anything.
02:47 But see, there are some fixed measures with IMF, Mr. Shabaz,
02:50 we have to achieve the primary surplus of fiscal deficit,
02:53 but along with that, there is also a target of circular debt of 2310 billion,
02:57 which we have to maintain according to the IMF bill,
02:59 targeted subsidies are also to be kept limited to 900 billion, so there is no scope, she is right about that.
03:04 But the will should also be seen somewhere, right, sir?
03:06 If the chairman of Nadra can arrange for the elections in the agreement,
03:11 that the present service officers, soldiers can also be appointed,
03:15 then maybe they can do this too, if you ask the same question.
03:19 See, Mr. Mehra, as far as this is concerned, does the government have any scope to give more subsidies?
03:25 The first subsidy in the budget is of 976 billion, so they have no scope at all.
03:30 I will support them up to this point, and it is right that more subsidies cannot be afforded.
03:34 Secondly, the solution that they have brought, that we will do 6 electricity bills at a time,
03:41 is this a solution? It can definitely give you a temporary relief.
03:46 Okay? It cannot do more than this.
03:49 Now the problem will be that if you do not deposit your August bill,
03:53 or if you do, then your 6 bills are still done at the same time,
03:55 and they will be together from October to March, October 2023 to March 2024.
04:00 So you will also pay your routine bill monthly, and then the things that will come after that,
04:06 your quarterly tariff adjustment is going to come, the fuel price adjustment is going to come,
04:09 you will also pay the additional cost in that, so this is not a solution.
04:14 Now, is it acceptable or not?