New Delhi: The economic crisis that Pakistan Prime Minister Shehbaz Sharif’s government is facing is threatening to destabilise the country’s corridors of power. And award-winning journalist Munizae Jahangir has sounded the alarm.
“Sources tell me there are no funds to pay salaries of the foreign office, the government is under an unprecedented financial distress,” she said in a tweet. “Tough times ahead peeps, brace yourselves.”
Neither Pakistan’s political leaders nor government officials have responded to Jahangir’s allegations.
But the writing has been on the wall for some time now. In December 2022, the government decided to auction off one of its diplomatic properties in Washington, D.C. Back then, the move sparked murmurs that the Pakistan government was struggling to pay its diplomatic staff on time. Incidentally, the building, which once housed the defence section of the Pakistan Embassy, received the highest bid of almost $6.8 million from a Jewish group that wants to set up a synagogue on the property.
Also read: Pakistani minister’s newest solution for population control — shut shops at 8 pm
Cost-cutting measures
Since then, the Shehbaz Sharif government has introduced a slew of cost-cutting measures, such as limiting the fuel entitlement of its fleet of vehicles to 120 litres a month. The Pakistani Cabinet Secretariat issued a notification that it was “imperative” to take extreme measures. Dearness allowances and leave encashments of a section of employees were also cut or stopped.
The list of measures didn’t stop there. All allowances of more than 25 per cent from the salaries of government employees were removed. It also called for avoiding paying any medical bills to employees who are between Grade 11 to 21 until the country’s “financial woes subside.”
And in case of violation of rules, employees should be punished with a 50 per cent deduction from their salary. The list also prohibited the government from offering bonuses to government employees.
Last week, the government also introduced a slew of measures to cut down energy costs and decrease dependency on imported oil. This included shutting down markets and wedding halls early, introducing electric motorcycles by the end of the year, and insisting on government employees working from home.
Also read: In Pakistan, season of ‘slander’ continues—Now a tale of Generals, actresses, honey-traps
‘South Asia’s weakest economy’
The World Bank has deemed Pakistan’s economy to be the weakest in the world as the country struggled to keep up with high inflation, soaring piles of debt, and depleting forex reserves. The report warns that Pakistan’s economic growth will slow further to two per cent during the current year.
“Recovery and reconstruction needs are expected to be 1.6 times the FY 2022-23 national development budget,” the report said.
Meanwhile, Shehbaz Sharif has been reaching out to friendly nations, seeking financial assistance. Pakistan has sought $4 billion financial aid from the UAE and Saudi Arabia. Sharif on Sunday admitted that it was “embarrassing” for him to seek more loans from friendly countries, saying “it was not a permanent solution for the cash-strapped country.”