Shocking news for government employees over IMF program
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The Cabinet Committee for Economic Revival has presented a detailed road map that includes a plan to cut 14 trillion rupees in government expenses. According to a report, this plan will freeze salaries, pensions, and allowances, reduce staff ratios for officers, create non-targeted subsidies and 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 allocations in detail due to the substantial funding proposed in the budget for various institutions and departments, estimating potential savings of 315 billion rupees for the federal government in the current fiscal year.
It's anticipated that 50% of PSDP's portfolio will be transferred to the Public-Private Partnership (PPP) Authority, referred to as the P3A pipeline, to meet the IMF's condition for remaining active during the current fiscal year, which will restrict any form of supplementary grants.
Under the IMF's $3 billion Stand-By Arrangement program, the IMF has imposed restrictions on supplementary grants during the program's duration, so this will remain in effect in the current fiscal year as well.
