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IMF urges Pakistan to freeze govt salaries

Islamabad: The Worldwide Financial Fund (IMF) has urged Pakistan to freeze salaries of presidency workers and cling to the fiscal consolidation path by exhibiting a nominal main deficit within the new finances, mentioned Finance Ministry sources.

The IMF is insisting that Pakistan ought to proceed to observe the fiscal consolidation path as a result of a excessive and unsustainable public debt that’s set to hit 90 per cent of the full worth of nationwide economic system, The Specific Tribune reported.

The outbreak of the lethal novel coronavirus has uncovered vulnerabilities of Pakistan’s economic system that had already been struggling owing to weak financial foundations that brought on fiscal and present account deficit disaster after each 4 to 5 years.

Owing to the prevailing tight fiscal scenario, rising public debt and Pakistan’s determination to hunt debt reduction from G20 international locations, the IMF was asking Islamabad to freeze salaries of presidency workers, the sources mentioned.

Nevertheless, the federal government is resisting the demand as a result of excessive inflation that has eroded individuals’s actual earnings.

Nonetheless, it’s inclined to abolish over 67,000 posts which have remained vacant for over one yr and can also be able to additional squeeze present expenditures together with a ban on buy of automobiles.

The Pakistan authorities is ready to unveil the finances on June 12.

(IANS)

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