The International Monetary Fund (IMF) has allowed increasing the salaries of government employees in the budget 2020-21.
According to details, the decision has been announced during the third round of budget negotiations between IMF and Pakistan that took place in Islamabad on Tuesday. IMF has also allowed an increase in the pension of retired government employees. Also, the IMF agreed that there will be no increase in electricity bills and gas tariffs till October.
It should be remembered that the IMF had earlier last week urged Pakistan to freeze salaries of government last year decrease the burden on the annual budget.
Advisor to the Prime Minister on Commerce and Investment Razak Dawood said on Wednesday that the government will make sure new job creation in budget 2020-21 to execute its true vision in the country.
The advisor said to the sources that the government will follow the three-prong strategy to accomplish the objective of producing economic activity, following ‘Make in Pakistan ‘policy’ and tariff rationalization to increase export in the country.
He was asked about revenue collection. He replied that the purpose was to create direction related to revenue collection and to generate economic activity, “we will use Income Tax and Sales Tax for direct revenue collection, while import duties on raw materials for the industry will be brought down to zero”.
In addition to this, he also informed that the import duties on finished products will remain the same in this year’s budget in wake of coronavirus pandemic.