Govt freezes salaries to revive stalled IMF package

The government has not increased salaries of civil and military officials in the budget as Islamabad accepted a condition of the International Monetary Fund (IMF) for revival of a stalled package and relief from G-20 loan, sources said.

The insiders said owing to the prevailing situation, growing public debt and Pakistan's decision to seek debt relief from G20 states, the IMF asked Islamabad to freeze salaries of government employees.

The government wanted to raise salaries of civil and military officials by 10 percent, but it could not increase minimum honorarium of day labourers as IMF wanted demonstration of its ability to present and pass the budget 2020-21.