Prime Minister Shehbaz Sharif on Wednesday admitted that there will be more inflation as a result of the possible agreement with the International Monetary Fund (IMF).
Addressing a press conference, the PM said he hoped the matters with the IMF will be settled in the next few days.
At the end, Shehbaz also announced that he has decided to write a letter to President Arif Alvi condemning his “unconstitutional” act of announcing elections.
He informed the media that matters with the IMF are in their final stages.
The government has tried that the mini budget does not impact the poor population.
Most of the taxes through the mini budget have been imposed on luxury goods, he said.
In the supplementary financial budget, tobacco and luxury items have been taxed.
He claimed the IMF’s conditions are meant to reduce the circular debt, adding all conditions discussed with the IMF have been fulfilled.
The PM said the IMF has reduced some subsidies, and asked to facilitate the poor only. There will be some difficulties after the IMF program, he admitted.
He, however, promised that the coalition government will get the country out of any problems with the support of the people.
To facilitate the poor, the Benazir Income Support Program stipend is being increased by 25%. Moreover, Rs40 billion have been added to the program’s budget.
Austerity measures
Announcing austerity measures to be adopted by the government, the PM said ministers, advisers and state ministers will receive no salaries/incentives/perks, will pay the utility bills from their own pockets, and are returning all luxury vehicles and later auction them.
