Pak rejects IMF demand to freeze govt employees salaries; budget on June 12

The government is struggling to strike a balance between fiscal consolidation and providing an impetus to economic growth

Pakistan has rejected the demand made by the International Monetary Fund (IMF) to freeze the salaries of government employees.

Sources close to the matter informed Dunya News that IMF, during budget talks with Pakistan via two online digital meetings, urged for spending cuts in the next budget. On the other hand, Islamabad said that it cannot cut the salaries of government employees as it is necessary to protect government employees and pensioners from inflation.

The government will unveil the budget on June 12 and struggles to strike a balance between continuing with the fiscal consolidation and providing an impetus to