WORLD
Pakistan to slash 1,50,000 jobs, close six ministries under IMF loan deal
- IBJ Bureau
- Sep 30, 2024
In an effort to minimise administrative expenditures, cash-strapped Pakistan on Sunday announced to abolish about 1,50,000 government posts, close six ministries and merge two others as a part of reforms agreed upon with the International Monetary Fund (IMF) under a $7-billion loan deal.
The IMF on September 26 had finally given a nod to the assistance package and also released over $1 billion as the first tranche after Pakistan had committed to cut expenditure, increase tax-to GDP ratio, tax non-traditional sectors like agriculture and real estate, limit subsidies and transfer some fiscal responsibilities to provinces.
Addressing the media on his return from the US, Minister for Finance Muhammad Aurangzeb has said that a programme has been finalised with the IMF, which will be the last programme for Pakistan.
“We need to implement our policies to prove that it will be the last programme,” he said, and emphasised that in order to join the G20, the economy must be formalised.
The minister said that right-sizing within ministries was going on, and the decision to close six ministries is set to be implemented, while two ministries will be merged. “Additionally, 1,50,000 posts across various ministries will be eliminated,” Mr Aurangzeb said.
He dwelt at length on increasing tax revenues, noting that there were approximately 3,00,000 new taxpayers last year, and so far this year, 7,32,000 new taxpayers have registered, increasing the total number of taxpayers in the country from 16 lakh to 32 lakh.
Report By
View Reporter News