ISLAMABAD: The Pakistan government and the International Monetary Fund (IMF) reached a consensus on Tuesday, on not putting a freeze on the increase in salaries and pensions of government employees and keeping electricity and gas tarrifs at their current level, in the upcoming budget.
The issues came under discussion during the third round of talks between the Pakistani government and the International Monetary Fund (IMF) which ended on Tuesday, June 9.
According to reports, the IMF had asked the Pakistani government to cut spending during the previous meetings. However, the government refused to do so citing the need to protect government employees and pensioners and the citizens battling the Covid-19 induced economic meltdown, from the effects of inflation.
The agreement to not put a hold on the increase in salaries and pensions came after the government gave assurance to the IMF that it will not further increase its deficit and will increase its non-tax revenues.
