Pakistan’s Economic Struggles: Akhtar Shaheen on IMF Loan and Rising Electricity Costs
Recently, Pakistan secured a significant agreement with the International Monetary Fund (IMF) for a USD 7 billion loan. Despite this financial aid, many Pakistanis feel that their economic conditions are not improving. Akhtar Shaheen, a concerned citizen, expressed his views on the matter, stating that even a USD 14 billion loan would not help unless corruption is eradicated. He emphasized that corruption is a major issue affecting governance, economic development, and public trust in institutions.
According to the Transparency International Corruption Perceptions Index (CPI) 2022, Pakistan ranks 140th out of 180 countries, indicating widespread corruption in both public and private sectors. Shaheen also highlighted the rising electricity rates, which are causing significant distress among the population. He noted that people are selling their homes, lands, and livestock to pay their bills, questioning if this is the relief they are receiving.
In August, the National Electric Power Regulatory Authority (NEPRA) announced an increase in the electricity tariff by PKR 2.56 per unit. Pakistan is facing a severe electricity crisis with frequent power outages, rising costs, and inadequate infrastructure. This has led to public discontent, protests, and further economic hardships for consumers already dealing with inflation.
Doubts Revealed
Pakistan -: Pakistan is a country in South Asia, located next to India. It has a large population and faces various economic challenges.
IMF -: IMF stands for International Monetary Fund. It is an organization that helps countries by giving them loans and advice to manage their economies better.
USD 7 billion loan -: This means that Pakistan borrowed 7 billion US dollars from the IMF to help improve its economy.
Akhtar Shaheen -: Akhtar Shaheen is a person mentioned in the summary who is concerned about Pakistan’s economic problems and believes that corruption is a big issue.
Corruption -: Corruption is when people in power do dishonest or illegal things for personal gain, which can harm a country’s economy and its people.
Transparency International Corruption Perceptions Index -: This is a ranking that shows how corrupt different countries are perceived to be. Pakistan is ranked 140th, which means it is seen as having a lot of corruption.
Electricity costs -: Electricity costs refer to the amount of money people have to pay for using electricity. In Pakistan, these costs have been rising, making it difficult for people to afford.
Tariff increases -: Tariff increases mean that the price people pay for electricity has gone up, which can make it harder for families to manage their expenses.