Islamabad February 22 2023: Agreement with International Monetary Fund (IMF) to reach in next few days as we have fulfilled all conditions of the fund says Pakistan Prime Minister Shahbaz Shareef.
He was addressing to media at Islamabad and said that agreement with IMF will bring inflation but we are making sure to protect poor people.
Prime Minister said, “We have tried to set example for nation by leading from front.”
All members of the cabinet would pay the utility bills from their own resources and would return all the luxury vehicles which would be auctioned, he said, adding the cabinet members would use economy class during their visits abroad while their assisting staff would not be allowed to accompany them.
The prime minister further said the cabinet members, during their visits abroad would not stay in five stars hotels.
All the division, departments, subordinates and other government entities under the federal government would slash their current expenditures by 15 percent whereas the purchase of luxurious vehicles would be completely banned.
The prime minister said the senior officers in the federal government who had been utilizing official vehicles besides, availing the monetization scheme would return all such vehicles.
He said this practice was being immediately banned and anyone found violating the ban would be proceeded against.
The prime minister said that extra security vehicles for the cabinet members would be withdrawn and a committee headed by the interior minister would decide the matter in case of threats.
The TA, DA of the officials would be reduced by utilizing the telecommunication facilities like holding of zoom conferences which would be promoted to save expenditures.
The prime minister further announced that a single treasury account would be established. For the purpose of power and gas saving, the government offices would start functioning from 7.30am during the summer season while power-saving items would be used in the offices.
At the federal government level, no division, unit, district, or tehsil would be created for administrative purposes. The government servants would not be allotted more than one plot and a committee would present a plan of selling out the palatial official residences constructed during the British era, in a transparent manner, fetching handsome amount for the cash-strapped national exchequer, he added.
The prime minister said during ceremonies and in official meetings, single dish would be used except for foreign dignitaries, adding during the 2023-24 fiscal budget, extra measures would also be announced including steps to reduce losses of the state enterprises.
The prime minister said the cabinet members should be appreciated for their sacrifice and goodwill gesture for their decision over salaries and privileges.
Replying to a question, he said that they would announce a decision over the size of the cabinet in the next few days.
All the division, departments, subordinates and other government entities under the federal government would slash their current expenditures by 15 percent whereas the purchase of luxurious vehicles would be completely banned.
The prime minister said the senior officers in the federal government who had been utilizing official vehicles besides, availing the monetization scheme would return all such vehicles.
He said this practice was being immediately banned and anyone found violating the ban would be proceeded against.
The prime minister said that extra security vehicles for the cabinet members would be withdrawn and a committee headed by the interior minister would decide the matter in case of threats.
The TA, DA of the officials would be reduced by utilizing the telecommunication facilities like holding of zoom conferences which would be promoted to save expenditures.
The prime minister further announced that a single treasury account would be established. For the purpose of power and gas saving, the government offices would start functioning from 7.30am during the summer season while power-saving items would be used in the offices.
At the federal government level, no division, unit, district, or tehsil would be created for administrative purposes. The government servants would not be allotted more than one plot and a committee would present a plan of selling out the palatial official residences constructed during the British era, in a transparent manner, fetching handsome amount for the cash-strapped national exchequer, he added.
The prime minister said during ceremonies and in official meetings, single dish would be used except for foreign dignitaries, adding during the 2023-24 fiscal budget, extra measures would also be announced including steps to reduce losses of the state enterprises.
The prime minister said the cabinet members should be appreciated for their sacrifice and goodwill gesture for their decision over salaries and privileges.
Replying to a question, he said that they would announce a decision over the size of the cabinet in the next few days.
Speaking to the international broadcaster DW at the Security Conference in Munich, IMF chief Kristalina Georgieva said, “I want to emphasize that we are urging Pakistan to take steps in two areas, the first is to collect tax revenues, i.e. those people. Those who are earning well in government and private sector need to contribute to the country’s economy.”
“And secondly, subsidies should be given only to those who really need it. And unnecessary subsidies should be eliminated so that the rich should not benefit from the subsidies. And the policy of the IMF is very clear that we want to protect the poor people of Pakistan.”
Completion of the ninth review will make the country eligible for tranche of US$1.2 billion and also help the country to get additional commitments from friendly countries and Multilateral creditors.
State Bank of Pakistan believes that the completion of the pending 9th review under the IMF’s EFF is critical for reducing uncertainty and unlocking multilateral and bilateral inflows. The benefit of an 18.2 percent fall in imports was partially offset by declines in export receipts and remittances. Notwithstanding the reduction in the current account deficit, the external sector remains under stress due to delay in realization of official financial inflows, debt repayments and ongoing political uncertainty.
The EFF was approved by the Executive Board on July 3, 2019 (see Press Release No. 19/264 ) for SDR 4,268 million (about US$6 billion at the time of approval, or 210 percent of quota). In order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board approved an extension of the EFF until end-June 2023, rephasing and augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$6.5 billion.
