IMF asks Pak to freeze govt employees' pay, stick to fiscal consolidation

The Pakistan government is resisting the demand due to high inflation that has eroded people's real income

The IMF has asked cash-strapped Pakistan to freeze salaries of government employees and adhere to the fiscal consolidation path by showing a nominal primary deficit in the new budget due to the unsustainable public debt that is set to hit 90 per cent of the total value of the national economy.

Pakistan is finding it hard to concede to the two demands but the IMF is insisting that the country should continue to follow the fiscal consolidation path due to the high and unsustainable public debt, the Express Tribune reported on Friday.

Owing to the prevailing tight fiscal situation, growing