The federal government has opted to discontinue subsidies for government officials in anticipation of forthcoming discussions with the International Monetary Fund (IMF) regarding a new loan package this month.
Media outlets report the cessation of subsidies for customs officers ranging from grades 17 to 22, including subsidized house rent and medical charges.
These incentives, previously funded from the common pool fund, have been terminated as per the directive of the Federal Board of Revenue (FBR).
With talks scheduled this month for a new loan program with the IMF, sources indicate that discussions will encompass the elimination of unnecessary subsidies and pension reforms.
Following Pakistan’s completion of a $3 billion short-term loan program, negotiations for a new significant loan program with the IMF have been scheduled.
The IMF delegation is expected to arrive in Pakistan on May 15 to commence discussions on the new loan program, starting with technical-level negotiations before advancing to policy-level talks.
