Stakeholders expect tough budget under IMF shadow

Amid 38 per cent inflation and uncertain exchange rates, stakeholders have ruled out a pro-consumer budget for 2023-24. The government tried to help the masses by cutting the diesel price by Rs35 per litre followed by a drop of Rs80 per kg/litre in ghee/cooking oil rates at utility stores. However, exorbitantly high electricity bills continue making the lives of people miserable. Pakistan Business Council (PBC) CEO Ehsan Malik said the government’s ability to lower prices through a reduction in duties and taxes is limited. That’s mainly because the size of taxes and duties is minimal on essential food items, he said. A second reason is the lack of fiscal space in the budget given that there is a fiscal deficit target that the government must meet to fulfil the conditions set by the International Monetary Fund (IMF). The main method that it can deploy to buffer the impact of inflation for those who can least afford it is by enhancing the level of support it gives through the Benazir Income Support Programme (BISP). That is also the right way to target assistance, he said.