In an effort to cut administrative costs, Pakistan on Sunday announced plans to eliminate about 150,000 government posts, close six ministries and merge two others, as part of reforms by the International Monetary Fund. (IMF) under a USD 7 billion loan package, India Today reported.

The IMF approved the aid package on September 26, which includes Pakistan’s measures to reduce spending, increase the tax-to-GDP ratio, tax non-traditional sectors like agriculture and real estate, limit subsidies USD 1 billion was released as the first tranche after committing to and transferring financial responsibilities to the provinces.

Finance Minister Mohammad Aurangzeb explained that the program with the IMF would be Pakistan’s last, stressing the need for policy implementation to prove the country’s commitment, especially as it seeks to join the G20.

As part of the reforms, the government is resizing ministries, with six ministries to be closed and two others to be merged, while 150,000 government posts will be eliminated.

Aurangzeb also highlighted the government’s focus on increasing tax revenue, with a significant increase in taxpayers, with 732,000 new taxpayers this year, compared to 300,000 last year. Non-filers will no longer be able to purchase property or vehicles, further encouraging compliance.

The minister expressed optimism about Pakistan’s economic direction citing growth in foreign exchange reserves, national exports and IT exports as well as reduction in inflation. Pakistan’s foreign exchange reserves are at their highest level, and the current government has cut the policy rate by 4.5 percent since taking office.