Pakistan’s USD 7 billion IMF loan fails to alleviate economic struggles amid rising corruption, electricity costs

Pakistan has recently reached a significant agreement with the International Monetary Fund (IMF) for a USD 7 billion loan.Despite this financial support, there is a prevailing sentiment that conditions are not improving for the average Pakistani.

Many citizens express frustration over the country’s persistent economic struggles

Speaking on the matter, Akhtar Shaheen highlighted the ongoing challenges and stated, “In my opinion, even if the loan were doubled to USD 14 billion, Pakistan’s situation would not improve until the government, the establishment, and the institutions decide to end corruption. If we can eradicate corruption, we can effectively manage Pakistan’s available resources.”

Corruption remains a major issue in Pakistan, impacting governance, economic development, and public trust in institutions. Various reports indicate that corruption is deeply entrenched in many sectors, including politics, law enforcement, and public services.

According to the Transparency International Corruption Perceptions Index (CPI) 2022, Pakistan ranks 140th out of 180 countries, reflecting widespread public perception of corruption in both public and private sectors.

Shaheen also addressed the rising electricity rates in Pakistan, stating, “The cost of electricity is increasing day by day, placing an unbearable burden on the common people. Individuals are driven to despair, selling their homes and lands. In rural areas, people are forced to sell their livestock just to pay their bills. Is this 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, as reported by ARY News. Pakistan is currently grappling with a severe electricity crisis characterised by frequent power outages, rising costs, and inadequate infrastructure. This situation poses significant challenges to households and businesses, leading to widespread public discontent.

The government has raised electricity tariffs multiple times in recent years, resulting in protests and public outcry. According to The Express Tribune, electricity prices have risen significantly, further burdening consumers who are already facing inflation and economic hardships.