Islamabad: Pakistan is ready to “tighten the neck” in connection with the International Monetary Fund (IMF) loan. The latest information is that the huge energy subsidy given to exporting companies will be withdrawn immediately. There will also be measures including pay cuts in redundant civilian and security jobs. The IMF has imposed strict conditions on the loans needed to save the country in a financial crisis. Put forward IMF for the first stage of negotiations in this regard. Chief Nathan Porter arrived in Islamabad. Discussions at the technical level will continue until tomorrow.
The second phase of the negotiations will begin on the ninth of this month. The government of Pakistan is trying to overcome the economic crisis which remains extremely serious. Reports suggest that the middle class, government officials and the military, who have traditionally maintained a high standard of living, will have to make more compromises in the new situation. Currently, 30 percent of the country’s population is below the poverty line. Most of them are proceeding with the help of various government schemes. As the restrictions become stronger, their lives will become more miserable.
As part of reducing the fiscal deficit, subsidies of 2.5 trillion rupees, currently given in the energy sector, will be cut. There is also strong pressure on the political leadership to set an example by reducing the size of the cabinet. The government will also be forced to cancel the Rs 12,000 crore energy subsidy announced four months ago for out-of-budget exporters.
Pak Rupee IMF Exchange Rate Limit Efforts have already begun to revise the rules. Because of this, the value of the Pakistani rupee has fallen by more than 40 rupees against the dollar within a week.