Pakistan's President Asif Ali Zardari will forego his salary in the wake of "economic challenges" in the country, his office said, adding that he took the decision in an effort to "encourage prudent financial management".

In a statement posted on X, the Office of the President of Pakistan said on Tuesday that due to the prevailing "economic challenges faced by Pakistan", Zardari has decided not to draw his salary.

"The purpose of President Zardari's decision is to encourage prudent financial management in the country. The President decided not to burden the national treasury, preferring not to take a salary," it added.

On March 9, Zardari was elected as the 14th President of Pakistan, marking his second stint in office. He previously served as President from 2008 to 2013.

In a similar move, Mohsin Naqvi, who assumed office as Pakistan's new Interior Minister on Monday, also decided to forego his salary "during this tenure".

"Decided to forego my salary during this tenure. In these challenging times, committed to supporting and serving our nation in every possible way," he said in a post on X on Tuesday.

Pakistan’s economy has been in a free fall mode for the last many years, triggering unchecked inflation.

Last month, it was reported that the country was planning to seek a new USD 6 billion loan from the International Monetary Fund (IMF) in an effort to help the new government repay billions in debt which is due in 2024.

A Bloomberg report said Pakistan will also seek to negotiate an Extended Fund Facility with the IMF.

The report added that talks were likely to begin in March or April.

Due to a short-term IMF bailout, Pakistan averted a default in 2023. But that bailout will expire this month.

Source: India Today