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In a bid to address the significant balance of payments crisis and rejuvenate the faltering $350 billion economy, the Pakistani government in Islamabad has initiated a stringent austerity drive.
As per an exclusive report by a prominent private news channel, the federal government is deliberating the cessation of subsidies for Govt employees ranging from grade 17 to 22. Insider sources reveal that the green light has already been given to halt subsidies for customs officials.
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Furthermore, plans are underway to discontinue house rent and medical allowances for customs officials, as these perks were previously drawn from a communal pool fund.
The Federal Board of Revenue (FBR), the nation’s leading tax collection agency, has been directed to cease subsidies and benefits derived from the communal pool fund.
In anticipation of forthcoming negotiations with the International Monetary Fund (IMF), slated for the next month, discussions will predominantly center around streamlining unnecessary subsidies for government employees and instituting crucial pension reforms.
All eyes are eagerly fixed on the Federal Budget 2024-25, with widespread speculation suggesting a prospective salary hike for government employees.
Reports circulating within financial circles hint at a potential 15 percent salary increment, accompanied by a 10 percent enhancement in pensions. However, these reports remain unverified, lacking official confirmation from the government regarding salary adjustments in the forthcoming budget cycle.
By implementing these strategic measures, the Pakistani government aims to navigate through the economic challenges, paving the way for sustainable growth and stability.