IMF consensus over increase in govt salaries

Tuesday, June 9th: In budget talks between Pakistan and the International Monetary Fund (IMF), it was agreed to increase salaries and pensions. Electricity and gas will not be expensive until October 2020. Alternative revenues have been agreed to control the budget deficit.

According to sources in the Ministry of Finance, the IMF has agreed to provide relief in the first quarter of the next financial year and agreed on alternative revenues to control the budget deficit. The IMF has been assured that Pakistan Taxes will increase revenue.

According to sources, the IMF will relax the conditions till the first quarter of the next financial year and the federal government will maintain the condition of not taking loans from the SBP. Finance Ministry officials assured the IMF that most conditions will be met after October. Pakistan will adhere to the existing loan program.

Earlier, sources said that the budget targets would be reviewed in the second quarter and referred to the IMF again, but the budget targets would depend on the situation arising out of Corona. The budget for the next financial year will also try to balance non-development expenditure as recommended by the IMF.