Pakistan, IMF reach agreement over salaries of govt employees

Pakistan and International Monetary Fund (IMF) have reached agreement over issue of increase in salaries of government employees in budget 2020.

According to details, Pakistan has managed to persuade IMF for increase in salaries of government employees. The International Monetary Fund has also agreed on not increasing electricity and gas tariff till October.

Both sides agreed on use of alternative revenue sources to minimalize the budget deficit. Pakistan has assured IMF that it will also increase non-tax revenue and government will continue the freezing of the loans from State Bank of Pakistan (SBP).

Earlier, IMF urged Pakistan to freeze salaries of government employees and adhere to the fiscal consolidation path by showing a nominal primary deficit in the new budget.

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