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Salaries of Government Employees Should Not Be Increased Further

"The salaries of government employees should not be increased further and ..." The IMF demanded from Pakistan
International Monetary Fund (IMF)

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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