Pakistan is contemplating completely different proposals, together with slashing the salaries of presidency staff by 10 per cent throughout the board, in line with a media report on Wednesday, amidst the looming financial disaster within the cash-strapped nation.
Pakistan is grappling with one of many nation’s worst financial crises lately amid dwindling international trade reserves.
The Nationwide Austerity Committee (NAC) — constituted by Prime Minister Shehbaz Sharif — is contemplating completely different measures, together with reducing down the salaries of presidency staff by 10 per cent throughout the board, Geo News reported.
The NAC can be contemplating reducing down expenditures of ministries/divisions by 15 per cent, lowering the variety of federal ministers, ministers of state, and advisers from 78 to 30 solely whereas the remaining ought to work on a professional bono foundation, the report stated.
The suggestions could be finalised on Wednesday and the committee will ship the report back to prime minister Shehbaz.
The federal government is finalising suggestions on austerity because it seeks one other Worldwide Financial Fund (IMF) tranche however the authorities is reluctant to implement the conditionalities.
This hesitation created a impasse for the final two and a half months with the IMF.
Money-strapped Pakistan revived a stalled USD 6 billion IMF programme final 12 months which was initially agreed upon in 2019 however is discovering it arduous to fulfill the powerful situations of the Washington-based world lender.
There are stories that the IMF might not launch extra funds underneath the programme till the pledges made by the federal government are met.
The IMF board in August accepted the seventh and eighth critiques of Pakistan’s bailout programme, permitting for a launch of over USD 1.1 billion.
Islamabad is ready for the ninth overview of a mortgage association that the earlier authorities signed with the IMF. The overview would result in the discharge of the following tranche of funds to Pakistan which has been pending since September.
IMF officers have indicated that they’re keen to proceed working with Pakistan, however the nation ought to first meet some fundamental necessities.