In Islamabad, the Cabinet Committee on Economic Recovery has come up with a detailed plan to cut expenses halting government subsidies by a massive 14 trillion rupees.

In this plan of halting government subsidies, they will stop increasing salaries, pensions, and allowances. They will also reduce the number of officers compared to other staff. They have a plan to revise subsidies and grants to save money and cut down on development projects. They are thinking about stopping new programs and not allowing extra grants.

The government is also looking into partnerships with private companies to save money. They have some proposals for this, but they haven’t set a clear timeline for when these changes will happen.

To cut spending by 14 trillion rupees, the Cabinet Committee on Economic Recovery wants the federal and provincial governments to reduce the number of officers compared to other staff to a 3:3 ratio. But they haven’t said when this should happen.

Government Subsidies in Power Sector

The government spends a lot of money on subsidies and grants, especially in the power sector. They plan to review all of this spending in detail.

They also want to reduce spending on development programs and plans. They are thinking about moving some programs from the provinces to the federal government. This could save them a lot of money.

The Ministry of Finance says that focusing on certain development programs could save the federal government 315 billion rupees this year. They also want to reduce the costs of devolved ministries to save 328 billion rupees.

They are also planning to work more with private companies on development projects. They might transfer 50% of development projects to a public-private partnership authority.

The IMF has said no to extra grants during their $3 billion Standby Arrangement Program. So, this will stay the same for this year.

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