The Prime Minister of Pakistan, Shahbaz Sharif, shared with the public the measures that will save approximately $765 million annually according to the terms of the International Monetary Fund (IMF).

According to Geo News television news, Prime Minister Sharif made remarks about the measures taken by the government in the capital, Islamabad, to save approximately 765 million dollars annually.

While the sheriff announced that all ministers, secretaries of state, advisers and special assistants voluntarily opted out of their salaries, he did not specify how long this would take.

LUXURY VEHICLES WILL BE PURCHASED PAYING THEIR OWN BILLS

Stating that all the ministers will pay the electricity, telephone, water and natural gas bills from their own resources, Şerif said that all luxury vehicles will be purchased from members of the Council of Ministers and sold at auction.

Sharif said that government officials will travel in economy class for domestic and international visits, and special advisers will not attend official visits.

Expressing that cabinet members will not stay in 5-star hotels during their visits abroad, Şerif stated that spending in all ministries and sub-departments of ministries will be reduced by 15 percent.

Emphasizing that government officials will not be able to purchase luxury vehicles until June 2024, Şerif stated that online meetings would be preferred over official visits to different countries.

A PLATE OF FOOD WILL BE EATEN AT MEETINGS

Sharif stated that only one plate of food will be eaten at government meetings.

Noting that the bazaars and malls in Islamabad and the states will be closed at 20:30 due to energy saving, Sharif noted that otherwise the electricity will be cut off.

Sharif pointed out that the implementation of austerity measures is important, saying that the country faces a difficult task on the economic front.

Negotiations continue between Pakistan and the IMF on the release of a loan of 1.17 billion dollars.

The IMF demands that Pakistan increase its tax base, end privileges in the export sector and raise energy prices.

EXCHANGE RESERVE 3.19 BILLION DOLLARS

With a nominal gross domestic product of $350 billion, Pakistan has a foreign exchange reserve of $3.19 billion held by the Central Bank.

The government had suspended the entry into the country of all imported products, except basic foodstuffs and medicines, until an agreement was reached with the IMF.

Due to this government policy, which tries to keep the dollar in the country, thousands of containers cannot be imported into the country at the Karachi port.

Factories that produced in many sectors, especially steel, construction and textiles, reduced or stopped their operations due to the restriction on imports.

AGREEMENT WITH THE IMF ALSO IN 2019

Pakistan has agreed with the IMF on a $6 billion economic rescue package, which is scheduled to be paid in 39 months in 2019.

In July 2022, it was discussed again and the IMF announced that the total amount of the loan was increased from 6 billion dollars to 7 billion dollars.

Under the deal reached, the IMF stated that it would release a $1.17 billion loan to Pakistan if conditions were met.

EXTERNAL DEBT 274 BILLION DOLLARS

In addition to political crises and rising inflation, last year’s devastating flood and power shortage increased pressure on the country’s economy.

Pakistan’s national debt is around $274 billion, which corresponds to around 80 percent of its gross domestic product. This makes the country vulnerable to economic shocks.

The Islamabad government has to pay about $30 billion in foreign debt this fiscal year. (AA)