[Pakistan] Government orders AGPR to ‘stop’ salaries amid financial crisis

As a result of the current economic crunch and the country's deteriorating financial condition, Pakistan’s ministry of Finance and Revenue instructed Accountant General Pakistan Revenues (AGPR) to cease the clearing of bills, including salaries, Geo News reports. 

According to reporting from The News, the ministry also directed that the clearings of attached departments should stop until further notice.

Official sources reportedly confirmed to The News on February 24 that the operational cost-related releases faced difficulties, primarily due to Pakistan’s economic hardships.

The News did not receive a response to its request for comment from Finance Division officials. 

Sources reportedly said that they went to the AGPR office for clearance of their outstanding bills but were informed that the Ministry of Finance had directed them to stop clearing all the bills, including salaries, because of prevailing difficult financial positions. 

Exact reasons for the immediate stopping of the clearance of bills were not provided but ongoing financial difficulties could be cited as a driving force behind this move. 

Sources said the salaries and pensions of defence-related institutions had already been cleared for next month.

While meeting on February 22 with a delegation of M/s Rothschild & Co, Ishaq Dar said, "the government was steering the economy towards stability and growth adding that "the government is committed to completing the International Monetary Fund (IMF) programme and fulfilling all international obligations."

The minister's commitment to unlocking the IMF tranche was evident on February 20 when the National Assembly unanimously approved the Finance (Supplementary) Bill 2023 or 'mini-budget' — a mandatory move for seeking the $1.1 billion tranche of the IMF.

The bill increases sales tax from 17 per cent to 25 per cent on imports ranging from cars and household appliances to chocolates and cosmetics. In addition, a general sales tax was raised from 17 per cent to 18 per cent.

"The prime minister will also unveil austerity measures in the next few days," the minister told the lower house of parliament as the bill was passed. He added, "we will have to take difficult decisions".

The Ministry of Finance later released a clarification to address rumours that the government had given instructions to stop payment of pay, pension, etc.

“This is completely false as no such instructions have been given by Finance Division, which is the concerned federal ministry,” the statement read.

The ministry reportedly added that the AGPR has confirmed that pay and pensions have already been processed and will be paid on time. Meanwhile, other payments are being processed as usual.

Source: Geo News

(Links via original reporting)

As a result of the current economic crunch and the country's deteriorating financial condition, Pakistan’s ministry of Finance and Revenue instructed Accountant General Pakistan Revenues (AGPR) to cease the clearing of bills, including salaries, Geo News reports. 

According to reporting from The News, the ministry also directed that the clearings of attached departments should stop until further notice.

Official sources reportedly confirmed to The News on February 24 that the operational cost-related releases faced difficulties, primarily due to Pakistan’s economic hardships.

The News did not receive a response to its request for comment from Finance Division officials. 

Sources reportedly said that they went to the AGPR office for clearance of their outstanding bills but were informed that the Ministry of Finance had directed them to stop clearing all the bills, including salaries, because of prevailing difficult financial positions. 

Exact reasons for the immediate stopping of the clearance of bills were not provided but ongoing financial difficulties could be cited as a driving force behind this move. 

Sources said the salaries and pensions of defence-related institutions had already been cleared for next month.

While meeting on February 22 with a delegation of M/s Rothschild & Co, Ishaq Dar said, "the government was steering the economy towards stability and growth adding that "the government is committed to completing the International Monetary Fund (IMF) programme and fulfilling all international obligations."

The minister's commitment to unlocking the IMF tranche was evident on February 20 when the National Assembly unanimously approved the Finance (Supplementary) Bill 2023 or 'mini-budget' — a mandatory move for seeking the $1.1 billion tranche of the IMF.

The bill increases sales tax from 17 per cent to 25 per cent on imports ranging from cars and household appliances to chocolates and cosmetics. In addition, a general sales tax was raised from 17 per cent to 18 per cent.

"The prime minister will also unveil austerity measures in the next few days," the minister told the lower house of parliament as the bill was passed. He added, "we will have to take difficult decisions".

The Ministry of Finance later released a clarification to address rumours that the government had given instructions to stop payment of pay, pension, etc.

“This is completely false as no such instructions have been given by Finance Division, which is the concerned federal ministry,” the statement read.

The ministry reportedly added that the AGPR has confirmed that pay and pensions have already been processed and will be paid on time. Meanwhile, other payments are being processed as usual.

Source: Geo News

(Links via original reporting)