Prime Minister Shehbaz Sharif described the $3 billion worth of loan agreement with the International Monetary Fund as a “breathing space” for Pakistan. But he highlighted that funds were given to reform and restructure the archaic structure.

He said this while speaking to the members of the Lahore Chamber of Commerce and Industry and prominent businessmen at Lahore’s Governor House on Saturday.

PM Shehbaz said there was no other way left than to have “drastic structural and economic reforms”. For this, he said unity, sacrifices and struggle of all stakeholders, including the business community, “was the need of the hour”.

The government was taking all possible measures for the promotion of industry and agriculture, he claimed and urged industrialists and the business community to play their role in enhancing exports and stabilising the economy.

“The business community should also consider the fact that despite having rich resources, why Pakistan’s economy was unable to achieve the desired targets and its full potential,” he said, adding that Bangladesh’s textile sector totally relies on imported cotton, but it was developing fast and gaining a niche in the global market, while Pakistan’s textile was losing competition in the export markets.

“We are living in a regime where the industry has become nothing but rental income, as we are not ready to face challenges or to adopt modern technology,” he lamented.

He reiterated that the recent rise in the base power tariff of around Rs5 per unit was made on the demand of the IMF but also to bring the circular deficit.

On Friday, the power regulator raised the tariff to ensure Rs3.28 trillion in funds to the loss-making power distribution companies (Discos) during the current fiscal year.

“We have to, unfortunately, do this increase in the electricity prices because not only is it an IMF demand but where is the circular deficit going?”