On Friday, the IMF gave some serious advice to Pakistan regarding government job management. Pakistan is advised to stay away from filling in the vacant job positions with new employees due to lack of resources. Moreover, the IMF suggested that increment in Pakistanis salaries must not be made.
There have been significant discussions and negotiations between IMF and Pakistani officials in the capital. IMF put forward the appeal that Pakistan must avoid getting involved in excessive expenses unnecessarily. Furthermore, the IMF officials asked Pakistan not to invest money in purchasing more vehicles.
IMF reserved a tax target for Pakistan of around Rs5,103 Billion. However, the government declared that such a significant amount is not accomplishable, and the target must be around revenue of 4,600 Billion. The officials determined that the soaring value of the IMF’s tax target can end up in a mini-budget around the end of this year. Besides, there has to be an increment made in the government employees’ pension and salary due to the country’s state of inflation.
There might be more economic derailment in the IMF; the Pakistan Ministry of Finance shares these fears. Consecutively, there can be more downside influence on the economy in the coming year due to the COVID19. The economy experts presume that countries worldwide can’t expect to cut short their debts and deficits anytime soon in the future. Moreover, once the epidemic ends, the prices of fuel and gas are expected to go up.