Amid the ongoing economic crisis in Pakistan, the Shehbaz Sharif government is considering different proposals, including slashing the salaries of government employees by 10 per cent across the board. The National Austerity Committee (NAC) constituted by Prime Minister Shehbaz Sharif is also considering cutting down expenditures of ministries and divisions by 15 per cent, reducing the number of federal ministers, ministers of state, and advisers from 78 to 30 while the remaining should work on a pro bono basis, according to a report by Geo News on Wednesday (January 25).

The recommendations were supposed to be finalised on Wednesday and the NAC would send the report to Sharif. However, there is no update on this development so far.&nbsp;

The Geo News report said the government was finalising recommendations on austerity as it sought another International Monetary Fund (IMF) tranche, but is reluctant to implement the conditionalities. This hesitation created a deadlock for the last two and a half months with the IMF.

A report by Dawn on Thursday said that the government has sought support from the United States to unlock the IMF programme that would release $1.1 billion to the economy. In 2019, Pakistan and the IMF signed a $6 billion bailout which was topped by another $1.1 billion last year. However, this came along with conditions. Citing multiple reports, news agency PTI reported that the Washington-based global lender might not release more funds under the programme until pledges made by the Pakistan government are met.&nbsp;

On Wednesday, Pakistan's Finance Minister Ishaq Dar met a visiting US Treasury delegation, where he said that Islamabad will honour&nbsp;its international commitments and was in the process of taking "very tough decisions" such as increasing the prices of electricity and natural gas, said the Dawn report.

Dar also highlighted that Pakistan required breathing space as industry and agriculture had passed through the most challenging times after the devastating floods last year, it added.&nbsp; 
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Amid the ongoing economic crisis in Pakistan, the Shehbaz Sharif government is considering different proposals, including slashing the salaries of government employees by 10 per cent across the board.

Amid the ongoing economic crisis in Pakistan, the Shehbaz Sharif government is considering different proposals, including slashing the salaries of government employees by 10 per cent across the board. The National Austerity Committee (NAC) constituted by Prime Minister Shehbaz Sharif is also considering cutting down expenditures of ministries and divisions by 15 per cent, reducing the number of federal ministers, ministers of state, and advisers from 78 to 30 while the remaining should work on a pro bono basis, according to a report by Geo News on Wednesday (January 25). The recommendations were supposed to be finalised on Wednesday and the NAC would send the report to Sharif. However, there is no update on this development so far. The Geo News report said the government was finalising recommendations on austerity as it sought another International Monetary Fund (IMF) tranche, but is reluctant to implement the conditionalities. This hesitation created a deadlock for the last two and a half months with the IMF. A report by Dawn on Thursday said that the government has sought support from the United States to unlock the IMF programme that would release $1.1 billion to the economy. In 2019, Pakistan and the IMF signed a $6 billion bailout which was topped by another $1.1 billion last year. However, this came along with conditions. Citing multiple reports, news agency PTI reported that the Washington-based global lender might not release more funds under the programme until pledges made by the Pakistan government are met. On Wednesday, Pakistan's Finance Minister Ishaq Dar met a visiting US Treasury delegation, where he said that Islamabad will honour its international commitments and was in the process of taking "very tough decisions" such as increasing the prices of electricity and natural gas, said the Dawn report. Dar also highlighted that Pakistan required breathing space as industry and agriculture had passed through the most challenging times after the devastating floods last year, it added. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Amid economic crisis, Pakistan mulls 10% cut in salaries of govt employees: Reports

Pakistan’s foreign exchange reserves fell below $5 billion, threatening to spill over into a full-blown economic crisis. Watch this video to know more.

Pakistan's forex reserves dip below $5 billion; No money left for imports

The World Economic Forum (WEF) has identified the top five risks faced by economic-crisis-hit Pakistan. In its report — ‘Global Risks 2023’ — the WEF said that debt crisis, sustained and/or rapid inflation, state collapse, failure of cyber security measures and concentration of digital power are the top five risks faced by Pakistan, the Dawn reported on Thursday (January 12). The global forum said that Pakistan is facing a huge threat of hunger and distress amid a prevalent cost-of-living crisis.

The report said that the current cost-of-living crisis might be further aggravated by a combination of extreme weather events and constrained supply. “ (A combination of) extreme wea­ther events and constrained supply could lead the current cost-of-living crisis into a catastrophic scenario of hunger and distress for millions in import-dependent cou­n­tries or turn the energy crisis to­wards a humanitarian crisis in the poorest emerging markets” the report added.&nbsp;

ALSO READ | <a href="https://www.wionews.com/south-asia/pakistan-minister-claims-90-pledges-by-intl-community-at-geneva-conference-were-project-loans-551682">Pakistan minister reveals 90% pledges by int'l community at Geneva conference were project ‘loans’</a>

The WEF said that affordability and availability of necessities could stoke social and political instability and might also exacerbate instability not just in Pakistan, but in countries such as Tunisia, Ghana, Lebanon and Egypt,&nbsp;which are facing simultaneous food and debt crises.

Amir Jahangir, Chief Executive Officer Mishal Pakistan, the Partners Institute for New Economy and Societies Platforms of the World Economic Forum said the impact of insecurity would continue to be felt in Pakistan and may also exacerbate instability because of simultaneous food and debt crises, resulting in the emergence of a possible more technocracy-based decision-making leadership framework, said a report by Geo News on Thursday.&nbsp;

The WEF identified the cost-of-living crisis as the biggest short-term risk while the failure of climate mitigation and climate adaptation as the largest long-term concern. It also said that water shortage is widespread in Pakistan particularly impacting women and girls responsible for water collection, with impacts on health and education outcomes.&nbsp;

The global forum's observations come as Pakistani Prime Minister Shehbaz Sharif will seek a fresh economic package from the United Arab Emirates (UAE) during his two-day visit to the middle eastern country.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/pakistan-needs-8-billion-to-recover-from-devastating-floods-says-pm-sharif-at-un-conference-550730">Pakistan needs $8 billion to recover from devastating floods, says PM Sharif at UN conference</a>

Meanwhile, Saudi Arabia has agreed to assist Pakistan, by undertaking a feasibility study expanding its investments to $10 billion in Islamabad, while extending deposits with the State Bank of Pakistan to $5 billion after it rolled over $3 billion in December.&nbsp;

On Monday (January 9), international donors committed over $ 9 billion to help Pakistan recover from the devastating floods last year,&nbsp;which killed at least 1,700 people and displaced around eight million. Some of these donors include the World Bank, the European Union and the Islamic Development Bank.&nbsp;

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The World Economic Forum (WEF) has identified the top five risks faced by economic-crisis-hit Pakistan. In its report — ‘Global Risks 2023’ — the WEF said that debt crisis, sustained and/or rapid inflation, state collapse, failure of cyber security measures and concentration of digital power are the top five risks faced by Pakistan, the Dawn reported on Thursday (January 12).

The World Economic Forum (WEF) has identified the top five risks faced by economic-crisis-hit Pakistan. In its report — ‘Global Risks 2023’ — the WEF said that debt crisis, sustained and/or rapid inflation, state collapse, failure of cyber security measures and concentration of digital power are the top five risks faced by Pakistan, the Dawn reported on Thursday (January 12). The global forum said that Pakistan is facing a huge threat of hunger and distress amid a prevalent cost-of-living crisis. The report said that the current cost-of-living crisis might be further aggravated by a combination of extreme weather events and constrained supply. “ (A combination of) extreme weather events and constrained supply could lead the current cost-of-living crisis into a catastrophic scenario of hunger and distress for millions in import-dependent countries or turn the energy crisis towards a humanitarian crisis in the poorest emerging markets” the report added. ALSO READ | Pakistan minister reveals 90% pledges by int'l community at Geneva conference were project ‘loans’ The WEF said that affordability and availability of necessities could stoke social and political instability and might also exacerbate instability not just in Pakistan, but in countries such as Tunisia, Ghana, Lebanon and Egypt, which are facing simultaneous food and debt crises. Amir Jahangir, Chief Executive Officer Mishal Pakistan, the Partners Institute for New Economy and Societies Platforms of the World Economic Forum said the impact of insecurity would continue to be felt in Pakistan and may also exacerbate instability because of simultaneous food and debt crises, resulting in the emergence of a possible more technocracy-based decision-making leadership framework, said a report by Geo News on Thursday. The WEF identified the cost-of-living crisis as the biggest short-term risk while the failure of climate mitigation and climate adaptation as the largest long-term concern. It also said that water shortage is widespread in Pakistan particularly impacting women and girls responsible for water collection, with impacts on health and education outcomes. The global forum's observations come as Pakistani Prime Minister Shehbaz Sharif will seek a fresh economic package from the United Arab Emirates (UAE) during his two-day visit to the middle eastern country. ALSO READ | Pakistan needs $8 billion to recover from devastating floods, says PM Sharif at UN conference Meanwhile, Saudi Arabia has agreed to assist Pakistan, by undertaking a feasibility study expanding its investments to $10 billion in Islamabad, while extending deposits with the State Bank of Pakistan to $5 billion after it rolled over $3 billion in December. On Monday (January 9), international donors committed over $ 9 billion to help Pakistan recover from the devastating floods last year, which killed at least 1,700 people and displaced around eight million. Some of these donors include the World Bank, the European Union and the Islamic Development Bank. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

World Economic Forum identifies top five risks faced by crisis-hit Pakistan: Reports

According to the reports, Pakistan's weekly inflation witnesses 30 percent rise compared to last year amid a rise in the prices of food and a couple of fuel items. Now, the question is will 2023 bring some relief for Pakistan?

Is Pakistan's economic crisis getting worse?