Rightsizing is an IMF structural benchmark, says finance minister

Uncertain about the financial impact of abolishing 150,000 posts and the public funds held in commercial banks, Finance Minister Muhammad Aurangzeb on Tuesday said the rightsizing of the federal government was a structural benchmark set by the International Monetary Fund (IMF) and would be completed before June 30 this year. Speaking at a news conference with MNA Bilal Azhar Kiani and ambassador-at-large on rightsizing Salman Ahmad, the finance minister acknowledged that while the rightsizing was an IMF structural benchmark, it was also in the best interest of the country. “We aim to reduce the size of the federal government and cut down on expenditures,” he said. He said the finance ministry was committed to transferring cash balances held in commercial banks back into the treasury single account — another IMF requirement — to ensure that only net borrowing, rather than funds belonging to various projects and divisions, remains in commercial banks, allowing the government to borrow for other needs. He added that only 15-20 per cent of cash balances in commercial banks were outside the treasury single account, and this issue would be addressed as a priority.