The federal government continues to implement the conditions imposed by the IMF. The government of Pakistan is seeking another IMF package to meet its financial needs. Under pressure from the IMF, the Shehbaz government has once again increased electricity and gas prices. The people are feeling the pain of this increase in utility bills.
It has become almost impossible for the majority of the population to pay their expensive utility bills. Instead of taxing the rich and the elite, the government continues to burden the already struggling masses. The government continues to provide exemption of trillions of rupees to the elite. The elite is not ready to share the burden of the crisis and to pay their fair share of taxes. The IMF is pressurizing the government to increase the revenues. Instead of increase the tax base and to bring all the rich people in tax net, The government choose to increase the prices of basic utilities. Even the middle class is feeling the pain of the rising cost of living. The federal government also imposed more taxes on utilities and food items.
The people have been forced to make choices either to pay the utility bills or buy food for the family. The electricity has become so expensive that working-class and poor people cannot afford it. Even the middle-class people have been forced to turn off their air conditioners. The low-income families are spending 40 to 50% of their incomes on utility bills. They have no other choice but to cut their budget for education, health, and grocery. After a big hue and cry, the federal government has decided to provide relief to consumers consuming less than 200 units per month. But its too little.
Not only the cost of living is on the rise but the cost of production is also rising. Some factories have decided to cut production or to close the factories due to the expensive energy. This is not a healthy situation. Both the domestic, commercial and industrial consumers are facing problems due to the expensive energy. Nearly 60% Pakistani population live in poverty so their not in a position to afford such an expensive energy.
The government needs to change this strategy to collect revenues through the indirect taxes and utility bills. The tax burden and expensive energy not only affecting the masses but also hurting the economy. How long the government will be able to continue the policy to burden the masses. There is a limit that how much burden a common man can bear. They are almost on the edge. Government should not test the patience of the people.
