The Cabinet Committee for Economic Revival has presented a detailed roadmap that includes a plan to cut 14 trillion rupees in government expenses.According to a report, this plan will freeze salaries, pensions, andallowances, reduce staff ratios for officers, create non-targeted subsidiesand grants for cost reduction, and consider reductions in PSDP and ADPs.
New schemes will be halted, and supplementary grants will not be allowed.The government aims to scrutinize all these significant funding allocationsin detail due to the substantial funding proposed in the budget for variousinstitutions and departments, estimating potential savings of 315 billionrupees for the federal government in the current fiscal year.
It’s anticipated that 50% of PSDP’s portfolio will be transferred to thePublic-Private Partnership (PPP) Authority, referred to as the P3Apipeline, to meet the IMF’s condition for remaining active during thecurrent fiscal year, which will restrict any form of supplementary grants.
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Under the IMF’s $3 billion Stand-By Arrangement program, the IMF hasimposed restrictions on supplementary grants during the program’s duration,so this will remain in effect in the current fiscal year as well.
