A general strike began in the markets of major Pakistani cities on Wednesday morning in response to a call by traders’ unions.
Al Jazeera’s correspondent in Pakistan, Abdul Rahman Matar, reported that shops in most markets in major cities, including the capital, Islamabad, have stopped working.
The protest came after the government raised electricity prices and imposed new, higher taxes on merchants.
The call for a general strike was supported by a number of political parties and forces opposing the government.
Pakistan and the IMF reached an agreement on the loan in July, but it still awaits approval by the IMF’s Executive Board and “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”
In an interview with Reuters on Tuesday, Pakistan’s central bank governor Jameel Ahmed expected that financing needs would be met easily during the next fiscal year and in the medium term.
Pakistan has previously relied on traditional allies such as China, Saudi Arabia and the UAE to “roll over” debt rather than default.
Ahmed said he expected to receive similar guarantees over the next three years, giving the government more time to get its finances in order.
He explained that the “Central Bank” estimates Pakistan’s total financing needs in the coming years at less than the 5.5% of GDP expected by the International Monetary Fund in its latest report on the country in May.
“Pakistan’s overall financing needs have declined in the past few years,” Ahmed also said.
In 2023, Pakistan faced a severe balance of payments crisis, with the central bank’s reserves being enough to cover only one month of imports.
After 8 months of arduous negotiations on fiscal discipline, the IMF approved a 9-month, $3 billion bailout programme for Pakistan.
