In an effort to reduce administrative costs, the government will eliminate 150,000 vacant positions, dissolve one ministry, and merge two others, Finance Minister Muhammad Aurangzeb announced, as part of reforms agreed upon with the International Monetary Fund (IMF) under $7 billion loan deal.

The IMF Executive Board approved the loan agreement on Wednesday,  while State Bank of Pakistan (SBP) received first tanche of approximately $1.03 billion (SDR 760 million) on Friday under the 37-month Extended Fund Facility (EFF) programme.

Addressing the media in Islamabad on Sunday, he said after the federal cabinet’s approval, the rightsizing committee had decided to scrap 60% of the vacant seats, which would help reduce the expenditures.

The finance czar, while giving details of the government’s measures, the Capital Administration and Development Division (CADD) ministry would be dissolved.

A government spokesperson on September 1 told Geo News that scores of high-ranking officials would be put on the chopping block.

“The rightsizing committee has reviewed six ministries so far, in the first phase. Dissolution of one ministry has been approved, while two others will be merged,” he had said.

Whereas, the cabinet committee on institutional reforms on August 16 recommended curtailing 150,000 vacant positions, banning contingency recruitment, and outsourcing non-core services like cleaning, janitorial work, which would gradually phase out many positions in grades 1 to 16.

In a meeting, presided over by Prime Minister Shahbaz Sharif, to reduce public sector size and expenses, a committee headed by the finance minister, had presented its recommendations for rightsizing the federal government departments.

The Ministry of Finance was asked to oversee the cash balances of other federal ministries.

The committee provided a detailed briefing on recommended reforms for five federal ministries: the Ministry of Kashmir Affairs and Gilgit Baltistan (GB), the Ministry of State and Frontier Regions, the Ministry of Information Technology and Telecommunication, the Ministry of Industry and Production, and the Ministry of National Health Services.

Addressing the media today, Aurangzeb said the government’s measures including securing the International Monetary Fund (IMF) bailout package would bring economic stability.

On expanding the tax net, he said the government had every kind of data that would be utilised in this regard. “Only 14% retailers are registered in the sales tax at the moment.”

“We will be forced to block utility services of non-registered people,” he warned, adding the government had ended all the exemptions on tax.

“It is not appropriate to treat taxpayers and non-taxpayers alike. We are left with no option but to expand the tax net,” he added.

The federal minister also said the government would have to boost the efficiency of the Federal Board of Revenue (FBR) and for that reason 2,000 chartered accountants would have to be hired.

“The FBR’s ability to audit will also be enhanced. Hence, 2,000 tax audit experts will be appointed in the FBR.”

KARACHI – The Pakistan Stock Exchange (PSX) witnessed losses for second consecutive day as KSE-100 index has plunged by 60.28 points points amid rising selling pressure despite a successful deal with the International Monetary Fund (IMF) for $7 billion loan.

The KSE-100 benchmark stood at 81,597.68 points as compared to previous day’s closing of 81,657.96 points. As the marked opened, it registered gain as it reached 81,737.60 points mark but it soon reversed after sellers dominated the market.

Total 67,914,846 shares were traded with total value standing at Rs2,284,532,694.

A day earlier, the 100-Index turned around to bearish trend on Thursday, losing 589.95 points, a negative change of 0.72 percent, closing at 81,657.97 points against 82,247.92 points on the last working day.

A total of 423,942,319 shares were traded during the day as compared to 422,163,158 shares the previous trading day, whereas the price of shares stood at Rs 17.671 billion against Rs.18.380 billion on the last trading day.

As many as 444 companies transacted their shares in the stock market, 125 of them recorded gains and 263 sustained losses, whereas the share price of 56 companies remained unchanged.

The three top trading companies were PIA Holding Company with 36,327,627 shares at Rs20.91 per share, WorldCall Telecom with 33,114,742 shares at Rs 1.23 per share and Kohinoor Spinning with 25,821,689 shares at Rs 8.28 per share.

Sapphire Textile Mills Limited witnessed a maximum increase of Rs 108.85 per share price, closing at Rs 1,257.62, whereas the runner-up was Hallmark Company Limited with Rs 93.39 rise in its per share price to Rs 1,027.29. Unilever Pakistan Foods Limited witnessed a maximum decrease of Rs 254.31 per share closing at Rs 1,7145.00 followed by Sapphire Fibres Limited with Rs 119.90 decline to close at Rs 9,855.544.

ISLAMABAD – Gold rates in Pakistan soared to new highs on Thursday after witnessing further gains amid increasing global prices.

According to Sarafa Association, the price of per tola gold moved up by Rs1,500 to settle at Rs277,000 while the price of 10-gram increased by Rs1,285 to settle at Rs237,482.

The yellow metal also registered upward trend in the international market as per ounce price increased by $12 to reach $2,647.

A day earlier, gold prices continued shattering records and it touched a new all-time high of Rs275,500 a tola on Wednesday.

The per tola climbed by Rs2,500, reaching Rs275,500, while 10 grams of gold increased by Rs2,144, bringing the total to Rs236,197.

NEW YORK – The International Monetary Fund (IMF) said that despite a significant decrease in inflation, Pakistan is facing major challenges.

The IMF issued a statement following the approval of Pakistan’s Extended Fund Facility by its Executive Board, saying that the first installment of $1 billion was disbursed.

According to the statement, the Executive Board approved a $7 billion loan under the Extended Fund Facility for Pakistan, which consists of a new loan program lasting 37 months. Economic growth in Pakistan has reached 2.4%, but the country continues to face significant challenges, including a difficult business environment, weak governance, and a limited tax base.

The IMF’s statement highlighted that Pakistan consistently implemented policies under the Stand-By Arrangement in 2023-24, taking important steps toward restoring economic stability. The growth rate reached 2.4% in fiscal year 2024, driven by activities in the agricultural sector, and inflation has significantly decreased to single digits.

The IMF said that appropriate fiscal and monetary policies have helped control the current account deficit, providing an opportunity to rebuild foreign exchange reserves. The reduction in inflation reflects improvements in both internal and external conditions.

The State Bank has cut the policy rate by 450 basis points since June, and a robust budget was presented in June 2024. Despite this progress, Pakistan’s vulnerabilities and issues remain serious.

The statement pointed out that the challenging business environment, weak governance, and excessive state intervention hinder investment. A narrow tax base makes it difficult to meet financial sustainability and social and developmental expenditure needs. Insufficient investment in health and education is inadequate for sustainable poverty alleviation, while a lack of infrastructure investment has limited economic potential.

The IMF emphasized that Pakistan is vulnerable to the effects of climate change and risks falling further behind other countries if appropriate reform adjustments are not prioritized.

The statement said that the aim of new IMF loan program is to restore macroeconomic stability, reform public enterprises, and improve the delivery of public services.

The program would also focus on infrastructure development and addressing the impacts of climate change. The continuous financial support from development partners would be crucial for the success of this program.