Negotiations between the IMF and Pakistan have reached their final stages, focusing on key issues for the release of the next one billion dollar tranche, sources said on Thursday.

The government has committed to reducing the treasury burden through rightsizing and amendments to the Civil Servants Act of 1973.

The Fund has called for increased revenue and reduced expenses, leading to proposed amendments that would eliminate additional positions.

Around 150,000 vacant positions in government institutions would be permanently removed, with plans to compensate excess employees via a golden handshake, according to the government’s economic team.

Discussions also covered the current fiscal year’s performance and targets for the next fiscal year. A tax revenue target of over Rs15 trillion has been proposed, with an aim to raise the tax-to-GDP ratio to 13 per cent.

Non-tax revenue is projected at Rs2.745 trillion while economic growth may exceed four per cent. This fiscal year, growth is expected at 3.5 per cent, with hopes of keeping the inflation rate in single digits for the next fiscal year.

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Sources said that the government will need more than $20 billion to meet external financial obligations, with ongoing talks about rolling over deposits from friendly nations.

There may also be offers of voluntary retirement for employees in various departments to ease the financial burden on the treasury.