Pak Economic Crisis: 10% Pay Decrease For Government Staff

Islamabad
In the wake of the impending economic catastrophe in the cash-strapped nation, Pakistan is reportedly mulling various options, including reducing the pay of government employees by 10% nationwide. In light of its declining foreign exchange reserves, Pakistan is currently experiencing one of its worst economic crises in recent memory. The National Austerity Committee (NAC), established by Prime Minister Shehbaz Sharif, is exploring a number of options, including a 10% overall pay cut for all government workers.

The article stated that the NAC is also thinking at decreasing ministry/division spending by 15% and slashing the number of federal ministers, ministers of state, and advisers from 78 to only 30, with the remainder working on a pro bono basis. The committee will finalise its recommendations on Wednesday and transmit the report to Prime Minister Shehbaz. While seeking another IMF tranche, the government is completing suggestions for austerity, but it is hesitant to put the conditions into practise. For the past two and a half months, the IMF and this hesitation have been in a standoff.
Cash-strapped It was previously planned that Pakistan would restart a USD 6 billion IMF programme last year, but the country is having trouble adhering to the stringent requirements of the Washington-based international lender. There have been rumours that the IMF would hold off on releasing more money for the programme unless the government fulfils its promises. The seventh and eighth assessments of Pakistan's bailout programme were authorised by the IMF board in August, allowing for the disbursement of more than USD 1.1 billion. Islamabad is anticipating the results of the ninth review of a loan agreement that the previous administration negotiated with the IMF. Following the evaluation, Pakistan will receive the next instalment of monies that have been due since September.