Pakistan announced major reforms to cut costs, including abolishing 150,000 government posts, closing six ministries, and merging two others as part of an IMF loan deal. The decision aims to reduce expenditures, increase tax revenues, and formalize the economy. Finance Minister Muhammad Aurangzeb highlighted the importance of implementing these policies to join the G20 and boost investor confidence.
The IMF approved a USD 7 billion loan package, releasing over USD 1 billion as the first tranche. The minister emphasized the need to increase tax compliance, pointing out the growth in the number of taxpayers. He also mentioned the positive impact on the economy, with rising foreign exchange reserves and decreased inflation.
Despite past economic challenges, Pakistan is determined to stabilize its economy with long-term strategies. The government’s efforts to streamline ministries and enhance revenue generation demonstrate a commitment to financial sustainability. The country’s progress towards economic stability and reforms will be crucial in securing a stable financial future.
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