150,000 jobs are lost in one fell swoop in Pakistan and 6 ministries are also closed
In a bid to reduce administrative costs, impoverished Pakistan has decided to cut 150,000 government jobs. In addition, it was also decided to close six ministries and merge another six. This measure is taken within the framework of the 7 billion dollar loan from the IMF.
Recently the IMF approved a loan to Pakistan and in the first phase granted it an amount of more than one billion US dollars. In return for this loan, Pakistan promised to reduce its expenses, increase the share of taxes in the country’s income, and impose taxes on sectors such as agriculture and real estate, where there were previously few or no taxes.
6 ministries also closed
Pakistan’s Finance Minister Muhammad Aurangzeb said that a new program has been prepared with the IMF, which is likely to be Pakistan’s last. He also said that if policies are implemented properly, this program could become the last.
The government is currently in a right-sizing process, in which the number of government jobs is being reduced. Under this plan, six ministries will be closed and two ministries will be merged. In addition, some 150,000 public jobs will be eliminated.
How many people filed tax returns?
The Minister of Finance said that last year 300,000 new people filed tax returns and so far this year 732,000 new taxpayers have registered. With this, the total number of taxpayers has increased from 1.6 million to 3.2 million. He said that Pakistan’s economy is now heading in the right direction and the country’s foreign exchange reserves have also increased, which are at the highest level ever. Inflation has also decreased and is now less than 10%. Pakistan almost went bankrupt in 2023, but a $3 billion loan from the IMF saved the country.
