ISLAMABAD: Federal Minister for Finance and Revenue, Miftah Ismail has said that Pakistan’s electricity billing and decision making system was very weak, adding that without reforms in the power sector, the country’s economy would sink.

“Our energy system is not modernized and we are running a 1950 power plant on furnace oil,” the finance czar said while addressing the ‘National Budget Conference 2022-23’ in Islamabad on Tuesday.

This year, the Ministry of Power will be given a subsidy of Rs 1,100 billion, he informed, adding that one of the reasons for load shedding was lack of money for fuel.

The minister said that dealing with the budget deficit was a big challenge for the government and the government has formulated its strategy in this regard.

He said that the PTI-led government had taken record loans in the history of the country, which had added to economic woes.

Ismail said that the interest payment bill on loans in 2018 was Rs 1499 billion.

He said that the Circular debt was Rs 500 billion in 2013, which has now multiplied. Miftah said that Rs 4,000 billion would be spent on interest payments on loans coming year 2020-23, which would have a negative impact on the national economy.

On the occasion, Federal Minister for Planning, Development and Reform , Ahsan Iqbal said that our development budget which had reached Rs 1000 billion in the past and reached Rs500 billion in this financial year.

He said the government has proposed Rs 800 billion development program for the coming budget, which will usher in a new era of development in the country.

Ahsan said that the youth would get education and health opportunities in it which would secure the future of the country.

He said that investment in education, health and employment is very important which will lead to sustainable economic growth in the country.

The Minister said that a balance between income and expenditure was essential in the country.

He said that in the coming year, the Federal Board of Revenue will collect Rs7000 billion tax revenue.