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Pakistan said that it will cut around 150,000 government posts, close six ministries and merge two others, as part of reforms agreed upon with the IMF under USD 7 billion loan deal. The International Monetary Fund last week finally gave a nod to the assistance package and released over USD 1 billion as the first tranche after Pakistan committed to cut expenditures, increase tax-to GDP ratio and tax non-traditional sectors like agriculture and real estate. Read more: Israel-Hezbollah war impacts global stock markets: Asia shares dragged by Nikkei, China keeps rallying Pakistan finance minister Muhammad Aurangzeb said that a programme had been finalised with the IMF which is likely to be the last programme for Pakistan.
He said, “We need to implement our policies to prove that it will be the last programme." Right-sizing within ministries was going on and the decision to close six ministries is set to be implemented while two ministries will be merged, he said, informing, “150,000 posts across various ministries will be eliminated." Read more: Ashneer Grover will no longer be associated with BharatPe in any capacity There were approximately 300,000 new taxpayers last year and so far this year, 732,000 new taxpayers have registered, increasing the total number of taxpayers in the country from 1.
6 million to 3.2 million, he said. Pakistan's economy was moving in the right direction and the country’s foreign exchange reserves increased, reaching their highest level, the minister said, asserting, “Our claim that the economy is improving is not a hollow claim because inflation has decreased due to government policies.
Inflation has dropped to single digits.” Read more: Oil prices rise as Hezbollah leader’s death stokes tensions in Middle East, Iran's response awaited Pakistan has been struggling to fix its economy for the many years and it was close to default in 2023 but a timely loan of USD 3 billion by the IMF saved the situation..
