Staff Report
ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to terminate additional Utility Stores Corporation employees by June 30 as part of its right-sizing policy, media reported citing sources.
According to sources, 2,237 daily-wage workers have already been sacked in the first phase and in the second phase, approximately 2,800 contract employees from grades 1 to 13 will be dismissed. Employees in grade 14 and above will be transferred to a surplus pool by the same deadline, sources revealed.
The government has also decided to close an additional 1,000 financially weak Utility Stores by the end of the current fiscal year, reducing the total number from 5,500 to 1,500.
Daily-wage workers at these stores will also be terminated. The remaining stores are slated for privatization, as outlined in official documents.
Last fiscal year, Utility Stores received a Rs38 billion subsidy, but the Rs60 billion allocated for the current year has not been disbursed, sources confirmed.
It is worth mentioning here that the International Monetary Fund’s (IMF) Executive Board meeting is scheduled for May 9, with Pakistan listed on the official agenda.
During the meeting, the IMF board is expected to approve a disbursement of $1.1 billion for Pakistan under the ongoing financial program.
According to IMF statement, first Review under the Extended Arrangement under the Extended Fund Facility, the request for modification of performance criteria, and the request for an arrangement under the Resilience and Sustainability Facility are scheduled to take place on May 9.
Meanwhile, Pakistan has also secured $1.3 billion in climate financing from the International Monetary Fund.
This was stated by IMF Director of Communications Julie Kozack while responding to a query of media during a press conference.
Last month, Pakistan and the International Monetary Fund reached a staff-level agreement on the first review under Pakistan’s 37-month $7bn Extended Fund Facility (EFF) and on a new 28-month $1.3bn arrangement under the Resilience and Sustainability Facility (RSF), the federal government and the IMF confirmed.
Earlier, Pakistan has secured $1.3 billion climate financing from the International Monetary Fund (IMF).
This was stated by IMF Director of Communications Julie Kozack while responding to a query of media during a press conference.
Kozack confirmed that discussions on the Extended Fund Facility (EFF) and climate financing were held separately.
Pakistan successfully secured $1.3bln after successful negotiations on climate financing, the IMF communications director said and added the funds will be disbursed over 28 months.
IMF official also stated that Pakistan’s 37-month Extended Fund Facility program, finalized in September, will provide $7 billion in installments.
Following successful staff-level negotiations on March 25, Pakistan has completed its first EFF review, which will unlock an additional $1 billion.
On Wednesday, Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement on the first review under Pakistan’s 37-month $7bn Extended Fund Facility (EFF) and on a new 28-month $1.3bn arrangement under the Resilience and Sustainability Facility (RSF), the federal government and the IMF confirmed.
“The IMF team has reached a staff-level agreement (SLA) with the Pakistani authorities on the first review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF), and on a new 28-month arrangement under the IMF’s RSF with total access over the 28 months of around $1.3 billion (SDR 1 billion). The staff-level agreement is subject to approval of the IMF’s Executive Board. Upon approval, Pakistan will have access to about US$1.0 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to about US$2.0 billion,” the IMF said in a statement.
