‘Economic situation is more dire than initially predicted, says Shamshad Akhtar

Islamabad: Amidst the ongoing challenge of surging inflation, Shamshad Akhtar, the interim Finance Minister, conveyed a cautionary message on Wednesday regarding Pakistan's economic condition.

Akhtar emphasized that the economic situation is more dire than initially predicted and highlighted the government's lack of "fiscal space" to extend subsidies.

These remarks were delivered during a session of the Senate's Standing Committee on Finance. Akhtar underlined that the interim administration had inherited the existing International Monetary Fund (IMF) program, making it a "non-negotiable" component.

The statement from the finance minister comes at a time when Pakistan continues to grapple with high living costs, particularly elevated electricity rates, which have sparked nationwide protests.

While the caretaker government is striving to strike a balance between appeasing the IMF and preventing further public outcry, it has thus far been unable to present any relief measures. In a recent cabinet meeting led by Caretaker Prime Minister Anwaarul Haq Kakar, the interim leadership expressed their dilemma in addressing the issue. They even discussed the possibility of spreading electricity bills over instalments, pending clearance from the IMF.