Pakistan government faces increasing pressure from World Bank
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The World Bank has raised concerns about Pakistan's state expenditures totaling 1,124 billion rupees, as reported by ARY News in Islamabad on Monday. According to sources, the WB has recommended reducing various subsidies to achieve cost savings, suggesting that 167 billion rupees could be saved by cutting the Tariff Differential Subsidy (TDS). Additionally, the bank has suggested that 20 billion rupees could be saved by completely eliminating or reducing subsidies on tubewells. The lender has also requested a gradual reduction in funds allocated to devolved ministries, potentially allowing the federal government to save up to 328 billion rupees. Furthermore, the World Bank has recommended including the provincial share in the Benazir Income Support Program (BISP) expenses, which could result in federal government savings of up to 217 billion rupees. Regarding government funding for programs delivering services in provinces, the bank has proposed that 315 billion rupees could be saved by redefining expenditure. Additionally, the bank has suggested potential savings of seven billion rupees through the cancellation of the wheat support price subsidy.
