The rupee has depreciated since joining the IMF program
Federal Finance Minister Shaukat Tareen has said that the government will provide targeted subsidies on essential commodities, gas and electricity through the Ehsas program.
Addressing a press conference in Islamabad Tuesday, the finance minister said that in the past no attention was paid to the agriculture sector but the government was fixing prices from farmers to retailers. The government is eliminating the role of the middleman to ensure farmers get the right price for their produce.
The finance minister said that the government was trying to provide a maximum subsidy to people who were struggling. He predicted that the price of flour would come down in the next few days.
At the same time, he said that the prices of daily necessities in Pakistan are reasonable as compared prices in South Asia. Inflation was 12.68% in 2018 and is expected to remain at 8% this year, he added.
He then turned to dwell on some macro-economic indicators. According to Tarin, the government was forced to go to the IMF due to which, the rupee depreciated. Inflation rose due to higher policy rates and the rise in the value of the dollar from Rs104 to Rs166.
According to a report by Profit on Sunday, Pakistan and the IMF will start staff-level discussions for the release of the sixth tranche under the $6 billion Extended Fund Facility on September 29.
The Kamyab Pakistan Program would be launched this month, he announced.