IMF 'tasks' Pakistan to terminate Utility Stores employees by June 30

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, ARY News 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 ARY News 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.