Prime Minister Mian Shahbaz Sharif Leads 'War Cabinet'

Knowledge Class News: Prime Minister Mian Shahbaz Sharif Chairs First Federal Cabinet Meeting, Declares "War Cabinet" to Tackle Economic Challenges

In a worrisome revelation, the details of the first meeting of the federal cabinet, chaired by Prime Minister Mian Shahbaz Sharif on Wednesday, highlighted the dire state of Pakistan's economy. Acknowledging the seriousness of the challenges at hand, Prime Minister Sharif referred to his cabinet as a "war cabinet" and pledged to address the issues of poverty, inflation, unemployment, and economic hardships faced by the people.

Finance Minister Muftah Ismail, in a joint press conference with Information Minister Maryam Aurangzeb, expressed concerns over the economic situation and blamed the previous government's decision to provide petrol and diesel subsidies for jeopardizing the country's economic future. The subsidies, costing Rs. 96 billion in May and June alone, which is double the cost of running a civilian government in Pakistan, were deemed unsustainable.

Furthermore, Finance Minister Ismail revealed that the country's debt burden had significantly increased, with more than Rs. 20,000 billion borrowed over 15 years. During the previous government's tenure, the government debt increased from Rs. 24,953 billion to Rs. 42,745 billion, and the total foreign debt surged from Rs. 7575.4 billion to Rs. 101,023 billion, resulting in a trade deficit of Rs. 4343 billion. The number of unemployed people also spiked from 3.5 million to 9.5 million.

Finance Minister Ismail, who left for the United States on Thursday to negotiate with the International Monetary Fund (IMF), disclosed that the IMF had agreed to restore the $6 billion bailout package, including fuel subsidies and tax amnesty refunds, but with imposing stringent conditions. These conditions include increasing petrol and electricity prices, imposing new taxes, eliminating revolving electricity debt, and ensuring financial savings.

In order to address the economic crisis, the government is left with no choice but to take unpopular decisions, including a potential increase of Rs. 20 per liter in petrol and diesel prices to offset the negative effects of the previous government's oil subsidies. The government, however, has committed to absorbing Rs. 30 per liter from its own resources to partially alleviate the burden on the people. Concessions on loans and safe deposits from friendly countries such as China and Saudi Arabia are also being considered to bridge the economic gap and foreign exchange deficit.

In light of these challenges, there is a growing call for all political parties, including the PTI, to come together and form a long-term economic pact for the wider interest of the country, despite their ideological differences, to ensure sustained economic development regardless of changes in government. The nation awaits the outcome of the government's efforts to tackle the economic crisis and provide relief to the people.