Pakistan cuts 150K jobs, dissolves six ministries as part of IMF deal

In an effort to minimise administrative expenditures, cash-strapped Pakistan on Sunday announced to abolish about 150,000 government posts, close six ministries, and merge two others, as part of reforms agreed upon with the IMF under USD 7 billion loan deal.

The International Monetary Fund on September 26 finally gave a nod to the assistance package and also released over USD 1 billion as the first tranche after Pakistan committed to cut expenditures, increase tax-to GDP ratio, tax non-traditional sectors like agriculture and real estate, limit subsidies and transfer some fiscal responsibilities to provinces.

Addressing the media on his return from the US, Minister for Finance Muhammad Aurangzeb said that a programme had been finalised with the IMF, which would be the last programme for Pakistan.

We need to implement our policies to prove that it will be the last programme, he said, and emphasised that in order to join the G20, the economy must be formalised.

The minister said ...