The demands made by the IMF to the government before the budget for the fiscal year 2020-2021 came to the fore, including demands to increase the salaries of government employees, not to make new recruitment.
Negotiations between the International Monetary Fund (IMF) officials and the government on issues related to the annual budget are underway in Islamabad. Development spending cannot be reduced, setting a higher target may require a mini-budget.
The IMF has proposed to set a tax target of five thousand billion for the government this fiscal year, in addition to a demand from the IMF that the government reduce unnecessary spending, salaries and pensions. Do not buying the cars or hiring the new employees.
While the Government has called for setting a tax target of forty-six hundred billion to forty-seven hundred billion, according to the Home Minister. if a higher target is set, the mini-budget could come at the end of this year, while the defense budget, development expenditure A reduction in salaries and pensions is by no means possible.
According to the Ministry of Foreign Affairs, the IMF program is likely to be jeopardized in the coming financial year. At the moment, it is impossible to get rid of it. As soon as the Corona crisis ends, electricity and gas prices are likely to rise.
