Pakistani diplomatic staff go unpaid for months amid dollar liquidity crunch 

The Pakistani government is facing severe financial challenges as it has been unable to pay salaries to its diplomatic staff stationed at select missions for the past three months due to a severe dollar liquidity crisis, according to a report by the Times of India.

As reported by The News International, press attaches working in diplomatic missions in the United States and Hong Kong, as well as press counsellors posted in Singapore, have not been compensated since June.

The report further states that Pakistan's finance ministry has indicated that salaries cannot be disbursed even for the month of September, citing exhaustion of the country's foreign exchange reserves.

This crisis is particularly concerning for Pakistani officials stationed in cities where the cost of living is high, such as Washington, D.C. and Hong Kong, as they now might have to face another month without salaries.

Top government sources quoted in The News International confirmed the prolonged salary delay, stating, “The press attaches working in Washington, D.C., and Hong Kong as well as press counsellor deputed in Singapore continue to live without salary from June.”

This is not the first time Pakistan has faced such challenges in paying its diplomatic staff. In the previous fiscal year (2022-23), the government confronted a similar issue, which was ultimately addressed with the approval of salaries through the supplementary grant by then Finance Minister Ishaq Dar for employees in the Economic Coordination Committee (ECC) of the Cabinet.

Pakistan’s economy has been struggling for several years, leading to considerable hardships for its population due to soaring inflation rates. The crisis has been further exacerbated by depleting foreign exchange reserves and skyrocketing energy prices.

Despite receiving approval for a long-awaited $3 billion bailout from the International Monetary Fund (IMF) aimed at helping Pakistan avoid default on its debt repayments, Islamabad is grappling with the challenge of meeting the conditions imposed by the lender, further complicating the nation's financial outlook.

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