Earlier, the IMF had asked Pakistan for additional information regarding the budget. Pakistan is in urgent need of $10 billion foreign loan.
Due to this move of IMF, the government employees there may have to pay salaries.
Pakistan is currently going through a huge financial crisis. Meanwhile, the neighboring countries are facing economic crisis. Pakistan Got a blow. The International Monetary Fund (IMF) has refused to give loan to Pakistan. Earlier, the IMF had asked Pakistan for additional information regarding the budget. Pakistan is in urgent need of $10 billion foreign loan.
Due to this move of IMF, the government employees there may have to pay salaries. According to media reports, the Shahbaz Sharif government has given instructions to prepare a plan to cut the salaries of government employees by 10 percent.
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In such imf has also shied away from Pakistan, when the economic crisis there has gone from bad to worse. The IMF has also refused to send rescue teams to help the beleaguered country. The Shehbaz Sharif government had requested the IMF to send a team to complete the review. There was speculation that the IMF could provide financial assistance to Pakistan to deal with the economic crisis, but the international body turned down Pakistan’s request and refused to give it a loan.
Salaries of government employees will have to be paid
Pakistan is grappling with a balance of payments crisis. According to Reuters, the foreign exchange reserves of the State Bank of Pakistan (SBP) have fallen to $4.343 billion. Pakistan secured a $6 billion bailout in 2019, up from $1 billion at the beginning of the year. At present, an increase in gas prices by 70 and electricity prices by 30 percent has been seen in Pakistan.
At the same time, due to the economic crisis, Pakistan is also planning to cut the salary of government employees by 10 percent. Apart from this, the government is considering various measures to deal with the crisis. Ministries have been asked to cut expenditure by 15 percent. Apart from these, federal ministers and state ministers have also been asked to spend less.