Finance Minister Miftah Ismail is addressing a press conference in Islamabad to give an overview of the country’s current financial situation and the incumbent government’s measures to put the economy on track.

“The annual expenditure of running the government is Rs500 billion and the government is suffering a loss of Rs1,300 billion rupees in the power sector,” he said.

The country’s finance czar alleged that the previous government damaged the economy and key sectors of development.

Economic outlook: Targets to achieve till August 2023

• Decreasing inflation
• Development in the IT and agriculture sector
• Increasing exports
• No load shedding next year in the summer
• Boosting foreign reserves

Support from friendly countries

• Pakistan may get $1.2 worth of financing on deferred payment of oil from a “friendly country”
• Govt thinks one foreign country will invest $1.5 billion to $2 billion in stocks in Pakistan
• Another friendly country may give gas on deferred payment
• Another friendly country may give some deposits (to come in two forms: cash and SDR)

He was of the view that Sri Lanka should have increased fuel prices to improve its financial condition.

Salient features

• Pakistan is hopeful of saving $1 billion in fuel imports, which is expected to go down from over $3 billion to $2.7 billion
• It may appreciate the rupee against foreign currency
• Govt plans to provide relief to less than 100 units consumer of electricity
• Decrease in railway and airline fares
• Legislation is on the cards to change laws related to privatisation