Islamabad, In an effort to minimise administrative expenditures, cash-strapped Pakistan on Sunday introduced to abolish about 150,000 authorities posts, shut six ministries, and merge two others, as a part of reforms agreed upon with the IMF underneath USD 7 billion mortgage deal. The Worldwide Financial Fund on September 26 lastly gave a nod to the help package deal and in addition launched over USD 1 billion as the primary tranche after Pakistan dedicated to chop expenditures, improve tax-to GDP ratio, tax non-traditional sectors like agriculture and actual property, restrict subsidies and switch some fiscal obligations to provinces.
Addressing the media on his return from the US, Minister for Finance Muhammad Aurangzeb mentioned {that a} programme had been finalised with the IMF, which might be the final programme for Pakistan.
“We have to implement our insurance policies to show that it will likely be the final programme,” he mentioned, and emphasised that as a way to be part of the G20, the economic system have to be formalised.
The minister mentioned right-sizing inside ministries was happening and the choice to shut six ministries is ready to be carried out, whereas two ministries shall be merged. “Moreover, 150,000 posts throughout numerous ministries shall be eradicated,” Aurangzeb mentioned.
He dwelt at size on rising tax revenues, noting that there have been roughly 300,000 new taxpayers final 12 months, and thus far this 12 months, 732,000 new taxpayers have registered, rising the whole variety of taxpayers within the nation from 1.6 million to three.2 million.
Aurangzeb additionally mentioned that the non-filers class shall be abolished and people not paying taxes will now not have the ability to buy property or automobiles.
The minister claimed that the economic system was transferring in the suitable course and the nation’s overseas change reserves had elevated, reaching their highest degree. He highlighted important progress in each nationwide exports and IT exports, and acknowledged that investor confidence concerning the power of the economic system is a significant success.
Aurangzeb acknowledged that the coverage price has been decreased by 4.5 per cent by the federal government after coming to energy, and expressed optimism that the change price and coverage price will stay as anticipated.
“Our declare that the economic system is bettering is just not a hole declare as a result of inflation has decreased as a consequence of authorities insurance policies. Inflation has dropped to single digits,” he mentioned.
Pakistan has been struggling to repair its economic system for the final a few years and it was near default in 2023 however a well timed mortgage of USD 3 billion by the IMF saved the state of affairs.
Pakistan has negotiated a long-term mortgage with the worldwide lender with the hope and dedication that it will be the final mortgage. Nevertheless, many doubt this declare because the nation has already secured about two dozen loans from the Fund however failed to deal with the economic system on a everlasting foundation.
