IMF Allows Increase in Govt Salaries in Upcoming Budget

After days of negotiations, the International Monetary Fund (IMF) has finally agreed to increase the salaries of government employees in the forthcoming fiscal budget.

The devolvement came during the third round of budget talks between Pakistan and IMF that was held in Islamabad on Tuesday.

According to details, the country also managed to persuade the international lender for an increase in the pension of retired employees. The IMF agreed that there will be no hike in electricity bills and gas tariffs till October.


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The agreement with IMF is based on the assurance from the government that it will also increase non-tax revenue to service its debts.

Last week, IMF had asked Pakistan to freeze salaries of government employees to reduce the burden on the annual budget. However, Islamabad was quick to reject the demand.


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The government is set to present the budget for the fiscal year 2020-21 on June 12, with reports that this will be a tax-free budget.

Special Advisor to Prime Minister on Finance, Dr. Abdul Hafeez Shaikh, had earlier announced that the government will not introduce any new taxes in the upcoming budget while harsh measures will be taken to curb tax evasion.



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