Amid the Corona transition, the International Monetary Fund IMF has asked Pakistan, which is struggling with debt burden, to keep the salaries of its government employees stable and the primary deficit low in the new budget. According to the report of Pakistan's local newspaper Express Tribune, the IMF is strongly asking Pakistan to take steps to improve the fiscal situation, but it is becoming difficult for Pakistan to follow the IMF's instructions. Significantly, Pakistan is struggling with the burden of public debt. Pakistan's public debt has reached 90 percent of the size of its economy.

According to media reports, after the decision to increase the public debt of Pakistan and its debt relief from G20 countries, the IMF has asked Pakistan to freeze the salaries of government employees. The Pakistani government is not ready to accept this demand of the IMF and is opposing it. The Pakistani government believes that due to rising inflation in the country, the real income of the people has been lost. However, the Pak government has agreed to abolish around 67 thousand posts. These are the posts which were lying vacant for more than a year. At the same time, the Pak government has agreed to reduce many other expenses including the purchase of vehicles.

Apart from this, the International Monetary Fund wants the Government of Pakistan to announce the target of primary budget deficit in the new budget. Pakistan is going to present the budget on 12 June. The IMF demands that Pakistan keep the primary budget deficit at just 0.4 per cent of gross domestic product (GDP), ie Rs 184 billion. At the same time, the Pakistani government has proposed to keep it 1.9 per cent of GDP or Rs 875 billion. The same budget is being presented at a time when there is no possibility of increasing revenue collection in the coming financial year due to the current economic conditions. According to the report, due to very high inflation, the Government of Pakistan is preparing to increase the salary of its employees.

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