Protests in Pakistan Over Imran Khan’s Arrest and High Electricity Bills
Protests are happening across Pakistan, including in the capital city of Islamabad. People are demonstrating against the continued incarceration of Imran Khan and the high electricity bills.
Business Confidence Drops
The Gallup Business Confidence Index has shown that businesses are unhappy with the government’s handling of the economy. The survey, which included 454 businesses, revealed that business owners are pessimistic about their future due to political turmoil and a new tax-heavy budget.
The score for the current business situation, future business situation, and direction of the country has declined by four to ten percent. Many businesses believe the government’s new financial plan for FY25 is not business-friendly, with 85 percent considering it a bad budget.
Major Issues: Inflation and Power Outages
Inflation, which has soared to 12.6 percent, is the most cited problem, with 37 percent of businesses wanting the government to address it. Another major issue is the continuous power outages, with six out of ten businesses facing crippling load-shedding. Power tariffs for commercial establishments have also risen to PKR 77.15 per unit.
Concerns Over Energy Sector Loans
There are rising concerns in Pakistan’s financial sector amid negotiations with Chinese authorities over rescheduling energy sector loans. Finance Minister Muhammad Aurangzeb met with the China central bank governor on July 26. Businesses and banks are anxious about the outcome, fearing future investment may be affected if the talks do not go well.
A senior banker expressed concerns, saying, “We believe China will not outright reject Pakistan’s request to reschedule energy sector loans, but the final outcome appears bleak.”
Future Outlook
The Gallup survey indicates that businesses are more pessimistic about the future, with 57 percent expressing negative expectations. The net future business confidence score has worsened by 36 percent since the last quarter and is now at negative 14 percent.
Doubts Revealed
Protests -: Protests are when people gather to show they are unhappy about something. They might carry signs, shout slogans, or march in the streets.
Pakistan -: Pakistan is a country in South Asia, next to India. It has a lot of people and its capital city is Islamabad.
Imran Khan -: Imran Khan is a famous person in Pakistan. He used to be a cricket player and later became the Prime Minister of Pakistan.
Islamabad -: Islamabad is the capital city of Pakistan. It’s where the government buildings and leaders are.
Gallup Business Confidence Index -: The Gallup Business Confidence Index is a survey that asks businesses how they feel about the economy. If the number is high, businesses are happy; if it’s low, they are worried.
Inflation -: Inflation means that prices for things like food and clothes are going up. It makes it harder for people to buy what they need.
Power outages -: Power outages are when the electricity goes off. This can make it hard to use lights, fans, and other electric things.
Political turmoil -: Political turmoil means there is a lot of fighting or disagreement in the government. It can make it hard for the country to run smoothly.
Tax-heavy budget -: A tax-heavy budget means the government is asking people and businesses to pay a lot of money in taxes. This can make people unhappy because they have less money to spend.
Negotiations with China -: Negotiations with China means that Pakistan is talking with China to make deals, in this case about loans for the energy sector. They are trying to agree on terms that work for both countries.
Energy sector loans -: Energy sector loans are money borrowed to help make electricity and power. This can include building power plants or fixing old ones.
