Islamabad: Pakistan is ready to “tighten the neck” in connection with the International Monetary Fund (IMF) loan. The latest information is that the massive energy subsidy granted to exporting firms will be withdrawn immediately. There will also be measures including salary cuts in redundant civil and security posts. The IMF has imposed strict conditions on the loans needed to rescue the country in financial crisis. Putting forward IMF for the first phase of discussions in this regard. Chief Nathan Porter arrived in Islamabad. Discussions at the technical level will continue till tomorrow.
The second phase of negotiations will begin on the ninth of this month. The government of Pakistan is trying to overcome the economic crisis that continues to be extremely severe. 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. At present, 30 percent of the country’s population is below the poverty line. Most of them are going ahead with the help of various government schemes. As the restrictions become stronger, their lives will become more miserable.
As a part of reducing the fiscal deficit, subsidies of 2.5 trillion rupees, which are currently given in the energy sector, will be cut. Pressure is also strong 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 exporters outside the budget.
Exchange Rate Limit of Pak Rupee IMF Efforts have already started to revise the rules. Due to this, the value of Pakistani rupee has fallen by more than 40 rupees against the dollar within a week.