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Thursday, March 23, 2023

Economically troubled Pakistan government stopped pension with salary

News ECG: According to reports, the Accountant General of Pakistan Revenue (AGPR) has been ordered by the government of economically troubled Pakistan to halt clearing all bills, including those for the salaries and pensions of federal ministries and related departments, until further instructions are given.

The choice was taken in light of the nation’s dire financial situation. Even the means to keep the government running are lacking. Yet, the exact reason is still a mystery. According to the report, salaries and pensions for organizations involved in defense for the upcoming months have already been paid.

But, the Pakistani government has decided to stop paying all of their payments. In reality, a lot of people still owe money. There are now issues as a result of this. On Saturday, the Pakistani Finance Department refuted the reports.

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In a Saturday letter, the finance department stated: “There are allegations that the government has directed the suspension of wages, pensions, and other benefits. This is entirely untrue because the finance department hasn’t issued the relevant federal ministries any such orders.”

Pakistan’s foreign exchange holdings have lately dropped to USD 2.9 billion. It has now grown to around USD 4 billion. Yet, Pakistan borrowed the majority of this money. From China, some 700 million US dollars are seized.

Future issues for Pakistan are predicted to be more severe as a result of this ongoing borrowing. In such a circumstance, the administration is eagerly anticipating USD 1.1 billion in funds from the International Monetary Fund (IMF). Ishaq Dar, the finance minister of Pakistan, pledged to finish the IMF program and uphold all international commitments.

The Pakistani government recently passed a “mini-budget” that includes a sales tax increase from 17 to 25 percent on imports ranging from vehicles and home appliances to chocolate and cosmetics to unlock the doors of the International Monetary Fund (IMF).

Moreover, the general sales tax rose from 17 to 18 percent. It is predicted that the Pakistani government will put more stringent regulations into effect soon. The difficulties in this condition will affect Pakistan’s regular people.

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