The International Monetary Fund has asked Pakistan not to increase salaries of government employees or fill vacant posts, officials within the Finance Ministry said Friday.
Talks between Pakistani officials and IMF representatives have been ongoing in Islamabad.
The global lender has asked Islamabad to reduce unnecessary expenses and not to purchase new vehicles, according to the officials.
The IMF has proposed a tax target of Rs5,103 billion for the country.
The government declared the proposed tax target “unrealistic”, the officials told Samaa TV. It stressed fixing the target from 4,600 to 4,700 billion.
A higher tax target could lead to a mini-budget in December, officials said. The government would also have to give minimum raise in pension and salaries of government employees in comparison with the rise in inflation.
The Ministry of Finance has also expressed fears regarding derailment of the IMF programme in the next fiscal year, they said.
It believes that the coronavirus pandemic could continue to negatively impact the economy for up to a year.
It is impossible to get rid of the financial deficit, debts and their servicing in the near future, the officials believed.
They also said that the prices of electricity and gas could go up after the pandemic ends.