Govt Urges Action on SOE Losses & Circular Debt Crisis
Prime Minister Shehbaz Sharif warned about the enormity of annual losses worth Rs850 billion of state-owned enterprises (SOEs) and called for bringing leakages in the financial sector to a stop and eradicating circular debt from the power sector at the earliest.
Referring to a special cabinet meeting at Islamabad’s Jinnah Convention Centre, the prime minister went through the performance of the government that has completed one year since February 8 elections and the power-sharing arrangement between PPP and PML-N.
SOEs: “Bottomless Pits” Drying the Economy
Monumental Losses in Finances and Burden of Debt
PM Shehbaz termed SOEs as “bottomless pits” which require urgent financial restructuring. The Finance Ministry revealed that the firms incurred losses of Rs851 billion during 2023-24, and their total loan value stood at Rs9.2 trillion. The figure is comparable to the total revenue of the Federal Board of Revenue, and it is a massive financial and credit risk for the nation.
No Corruption Charges During Economic Reforms
Transparency Pledge by the Government
The prime minister praised his ministers that there were no corruption or propaganda cases last year, compared to the past governments. He requested them to keep their focus on economic stability and mentioned a good trend in key economic indicators.
Ramazan Relief Package: A Digital Leap for Transparency
Digital Financial Aid Through Wallets
PM Shehbaz also brought to the limelight the Rs20 billion Ramazan relief package, which was announced earlier this week, and will cover four million impoverished families. They will receive Rs5,000 each through digital wallets, with a clear and effective system of distribution.
Avoiding Financial Mismanagement
He emphasized that it is a “quantum jump” towards financial transparency, sidestepping mismanagement that had previously plagued institutions such as the Utility Stores Corporation.
Government’s Commitment to Economic Stability
Prevention of Default and Stimulating Economic Growth
The Prime Minister assured that his government took bold steps to prevent Pakistan from defaulting. Through tireless efforts, they aimed to provide an economic boost.
He highlighted that all macroeconomic indicators are outlining promising growth, in support of the government vision to transform Pakistan into a $1 trillion economy by 2035.
Resolving Tax Cases and Strengthening Financial Systems
Rs400 Billion in Pending Tax Cases
He was hopeful that the pending tax cases, worth Rs 400 billion, would be resolved soon. This would contribute significantly to the government’s revenue. He emphasized the need for unity to strengthen Pakistan’s fiscal foundation. Despite past challenges, he remains optimistic about a bright future.
Conclusion: A Road Map for Economic Rebirth
Strategic Reforms for a Stronger Future
Pakistan is facing significant economic challenges, prompting the government to take decisive actions. It aims to plug fiscal loopholes, ensure transparency, and strengthen economic stability. Firm leadership and wise reforms, and PM Shehbaz is all set to steer the country towards a more resilient and prosperous future.
