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IMF denies financial help to bankrupt Pakistan, govt employees' salaries likely to be cut

At a time when Pakistan's economic crisis is going from bad to worse, the International Monetary Fund has denied lifeline to India's neighbouring nation. It comes as a big blow to Pakistan as the IMF has denied sending rescue teams to help the crisis-hit nation. 

The government had requested the IMF to send a team for the completion of the review. Speculations were rife that the IMF would intervene to help Pakistan to help the nation to tackle its economic woes, the worst in a decade, but the request has been turned down. 

The forex reserves in the State Bank of Pakistan (SBP) have recently touched the lowest mark of $4.343 billion, just enough for two weeks. Pakistan has been battling a balance of payment crisis with foreign exchange reserves falling to $4.6 billion, barely enough to cover three weeks of imports - mostly for oil, reported Reuters. Pakistan secured a $6 billion bailout in 2019, which was topped up with another $1 billion earlier this year.

Pakistan had approached various nations, including the IMF, requesting financial assistance to bail them out essentially as it battles one of its worst inflations in several years. The country has seen a 70 percent rise in gas prices and a 30 per cent hike in power bills.

Pakistan is also planning to cut 10 percent salary of the government's employees. The government is considering various measures to deal with the crisis, such as cutting down expenditure on ministries by 15 percent. It also plans to reduce federal ministers, and ministers of state while the remaining should work on a pro-bono basis. 

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