Tunisia to slash public sector pay to unlock IMF loan

The Tunisian government has proposed urgent measures to cut the public sector pay in a bid to unlock a loan from the International Monetary Fund (IMF), the Tunis Afrique Presse reported.

The measures included limiting the percentage of job promotions, freezing vacant positions, and re-employing available human resources, according to a government statement released on Monday on the preparation of the state budget for 2023.

Tunisia’s public sector pay expenditures reached a record level of 15.6 per cent of the GDP in 2022, up from 10 per cent in 2010, leading to a limited budget capacity for public investment, Xinhua news agency reported.

Tunisia is seeking a $4 billion loan from the IMF to avoid bankruptcy. To this end, the North African country is required to implement deep reforms, including freezing wages, cutting energy and food subsidies and privatising some state companies.

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