Pakistan budget will see energy prices rise further in attempt to woo IMF

Pakistan’s government unveiled a new budget on Friday aimed at unlocking a financial package from the International Monetary Fund to boost its ailing economy. 

The budget will see rising fuel prices soar even further, and will cut electricity subsidies, making electricity 20 percent more expensive.

Mobile phones and cigarettes are also set to become more expensive in the country as it battles to bail out its desperate economy. The budget also aims to tax the wealthy, with taxes doubled on luxury cars, SUVs and some sedans.

A people-friendly budget by a people-friendly government. Some hard decisions. Some tough choices. Imperative to put Pakistan back on the road to recovery.#WeCanWeHaveWeWill#Budget_for_economic_stability pic.twitter.com/yeeRFZL4dN

— Hina Parvez Butt (@hinaparvezbutt) June 10, 2022

Prime Minister Shehbaz Sharif's administration has already implemented unpopular austerity measures, including raising the price of fuel to unlock a $6 billion loan package from the IMF. 

The promised IMF package remains suspended because of Pakistan’s failure to meet its targets in the previous year. 

The government has blamed the state of the economy on the previous administration of deposed Prime Minister Imran Khan. 

“In the last three years and three-quarters, [Imran Khan’s] incompetent team brought our beloved country to the brink of destruction,” said Finance Minister Miftah Ismail in his budget speech as quoted by the Financial Times. 

“The present government has very little time. We have decided that all changes should be undertaken for the benefit of the economy and our country.”

And on the other hand retard economic growth due to high interest rates. All our progressive tax reforms and Pro-poor programs such as Sehat card, Kamyab Pakistan are being shelved. It is an unimaginative, Purana Pakistan budget creating more burdens & misery for the nation.

— Imran Khan (@ImranKhanPTI) June 10, 2022

Prime Minister Shehbaz Sharif took office in May after his predecessor Imran Khan was ousted in a no-confidence vote. 

Khan has criticized the "unimaginative" budget, and added that he rejects the "anti people & anti business budget presented by [an] imported government."

Imran Khan, who still enjoys widespread popularity, has been organizing large-scale protests against the current government across the country.

He claims that Sharif and his allies helped topple him as part of a western-backed conspiracy, and is pushing for early elections.