"The salaries of government employees should not be increased further and ..." The IMF demanded from Pakistan
ISLAMABAD: The International Monetary Fund (IMF) has
demanded the government of Pakistan not to increase the salaries of government
employees in the next budget and to pursue financial stabilization policies
with the announcement of a nominal target of the primary budget deficit in the
budget. It will be very difficult for him to implement both the demands of the
IMF.
According to the Express, Pakistan's debt is likely to reach
90% of the value of the country's economy, in this context, the IMF is urging
the government to pursue deficit and debt reduction policies. According to
Finance Ministry sources, the IMF is urging Islamabad not to increase the
salaries of government employees due to the current difficult economic
situation, rising government debt and Pakistan's decision to seek debt relief
from the G20 countries. However, the government is reluctant to accept the
demand due to rising inflation.
According to the report, the government could eliminate
67,000 vacancies a year and ban the purchase of vehicles to further reduce
costs. The main demand of the IMF is that the government announce a target of
18 184 billion (0.4% of GDP) as a primary budget deficit. According to sources,
the government does not expect a significant increase in revenue collection in
the next financial year due to the current economic situation. On the other
hand, due to inflation, it intends to increase salaries by 10 to 15 percent and
pensions by 10 percent.
According to the newspaper, contrary to the IMF's demand,
the government has proposed that the primary target of the budget deficit be
set at 1.9% of GDP or Rs 875 billion. This means that according to the IMF, the
budget deficit target will be 7% of GDP, while the federal government is
looking at a budget deficit of 8.4% of GDP or Rs 3.9 trillion.
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