The federal government has decided to pay its employees salaries before Eid-ul-Fitr, according to a statement released by the Ministry of Finance on Wednesday.
The development comes amid consultation from Prime Minister Shehbaz Sharif and Federal Minister for Finance Ishaq Dar. As per the statement, the government has also decided to pay monthly pensions before Eid.
Dar has directed the Finance Secretary to make immediate arrangements in this regard.
It is pertinent to mention that Eid is expected to fall on either April 21 or April 22.
Months of political and economic turmoil, worsened by crippling floods last year and record inflation, have put Pakistan among countries facing a debt crisis.
China agreed to refinance $2 billion, of which $1.7 billion has already been credited to Pakistan’s central bank. China last month also rolled over a $2 billion loan, providing relief during Pakistan’s acute balance of payments crisis.
But talks with the IMF for a delayed $1.1 billion loan tranche, part of the bailout agreed upon in 2019, have dragged on and foreign exchange reserves have fallen to less than four weeks of imports.