Tunisia's IMF Loan Bid: Public Sector Pay Cuts Proposed

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Nyakundi Report

Newsroom 1 min read

Tunisia's government has proposed urgent measures to cut public sector pay in a bid to secure a loan from the International Monetary Fund (IMF).

The measures, outlined in a government statement on the preparation of the state budget for 2023, include limiting job promotions, freezing vacant positions, and re-employing available human resources.

According to the statement, Tunisia's public sector pay expenditures reached a record 15.6 percent of the GDP in 2022, up from 10 percent in 2010, leading to a limited budget capacity for public investment.

The North African country is seeking a 4-billion-U.S. dollar loan from the IMF to avoid bankruptcy, and is required to implement deep reforms including freezing wages, cutting energy and food subsidies, and privatizing some state companies.

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