Pakistan Halts Clearance Of Payments, Salaries Amid Financial Disaster: Report

Islamabad:

The cash-strapped Pakistan authorities has directed the accountant normal to stop the clearing of payments, together with salaries, owing to the present financial disaster, based on a media report at the moment.

The Ministry of Finance and Income additionally instructed the Accountant Normal of Pakistan Revenues (AGPR) to halt the clearing of all of the payments of the federal ministries/divisions and connected departments till additional discover, The Information Worldwide quoted official sources as saying.

The newspaper reported that the operational cost-related releases confronted difficulties primarily as a result of financial hardship going through the nation.

Pakistan’s international alternate reserves, which fell to a critically low degree of USD 2.9 billion a number of weeks in the past, have now risen nearer to USD 4 billion, even because the nation eagerly waits for the USD 1.1 billion tranches of funding from the Worldwide Financial Fund (IMF).

Minister for Finance Ishaq Dar, who was contacted for a remark by the newspaper, stated it could be unfaithful however promised to get again after affirmation.

Sources stated that they went to the AGPR workplace for clearance of their excellent payments however have been knowledgeable that the Ministry of Finance had directed them to cease clearing all of the payments, together with the salaries, due to the prevailing troublesome monetary positions.

The precise causes couldn’t be ascertained why the clearance of payments was stopped on a right away foundation.

The sources stated the salaries and pensions of defence-related establishments had already been cleared for subsequent month.

Finance Minister Dar whereas assembly on February 22 with a delegation of Rothschild and Co had stated “the federal government was steering the economic system in the direction of stability and development”.

He added that “the federal government is dedicated to finishing the IMF programme and fulfilling all worldwide obligations”.

Dar’s dedication to unlocking the IMF tranche was seen on February 20 when the nationwide meeting had unanimously accepted the Finance (Supplementary) Invoice 2023 or “mini-budget” – a transfer necessary for looking for funding.

The invoice will increase gross sales tax from 17 to 25 per cent on imports starting from vehicles and family home equipment to candies and cosmetics. A normal gross sales tax was raised from 17 to 18 per cent.

“The prime minister may also unveil austerity measures within the subsequent few days,” the minister advised the decrease home of parliament because the invoice was handed, including “we should take troublesome choices”.

The nation’s weekly inflation remained stubbornly elevated at 2.78 per cent week-on-week and 41.54 per cent year-on-year throughout the seven-day interval that ended on February 23, official knowledge confirmed on Friday.

This comes as the federal government of Pakistan nearly doubled the fuel costs from Rs 147.57 to Rs 295 to get the IMF’s approval for the USD 1.1 billion tranches out of the USD 6.5 billion bailout package deal below the Prolonged Fund Facility.

Analysts had stated final week that inflationary pressures would intensify as the federal government took tax measures and made electrical energy, petroleum, and fuel value changes to unlock the IMF programme.

Shoppers have been reeling below the burden of rising costs of important gadgets, significantly edibles. 

(Aside from the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)