Govt Austerity Drive to Save Only Rs. 17 Billion

For context, the federal government's new austerity measures are projected to save only Rs.

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• Prime Minister Shehbaz Sharif confirmed the austerity measures after public criticism of the government's decision to pass the financial burden of the Middle East war on to consumers.
• A 50 percent reduction in fuel allocations for official vehicles is projected to save Rs.

For context, the federal government's new austerity measures are projected to save only Rs. As Finance Secretary Imdad Ullah Bosal briefed lawmakers on the implementation of Pakistan's International Monetary Fund (IMF) program, 16.8 billion.

Bosal, who is additionally the government's chief negotiator with the IMF, informed the National Assembly Standing Committee on Finance that the savings would come mainly from cuts in fuel allocations for official vehicles and non-salary spending.

In practice, a 50 percent reduction in fuel allocations for official vehicles is projected to save Rs. While a 5 percent cut in non-salary expenses is projected to save Rs, 700 million over three months. 16.1 billion over one year.

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Prime Minister Shehbaz Sharif confirmed the austerity measures after public criticism of the government's decision to pass the financial burden of the Middle East war on to consumers. The government's monthly petroleum levy collection is projected at Rs. 139 billion.

In practice, the finance ministry informed the committee that a number of IMF conditions had not been fully met, including requirements related to sugar sector liberalization, health and education spending, the Sovereign Wealth Fund Act, statutory state owned enterprises and tax collection from retailers and agriculture.

Bosal remarked the administration was advancing work toward full liberalization of the sugar sector and had shared draft recommendations for a national policy with the provinces. While one province had reservations, with committee members identifying it as Sindh, three provinces had agreed to the proposal. Govt Won't Fully Disclose Civil Servants' Assets.

In practice, the administration additionally missed its health and education spending target for the last fiscal year. Against the IMF target of Rs. 3.47 trillion, the five governments spent Rs. 3.1 trillion. Bosal remarked lower federal tax collection had additionally forced the administration to ask provinces to reduce their spending.

Other pending IMF conditions include amendments to the Sovereign Wealth Fund Act, changes to laws governing nine statutory state owned enterprises, amendments to the Securities and Exchange Commission of Pakistan Act and measures to strengthen the anti corruption framework.

Notably, the finance secretary remarked implementation of the overall IMF program remained robust and that this had supported the administration reach staff level agreements without major difficulties in previous reviews. Nevertheless, the administration continues to work with the IMF on a number of outstanding conditions, including the agricultural income tax framework and the fixed tax scheme for traders. Stay Connected with ProPakistani.

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For now, govt Austerity Drive to Save Only Rs. 17 Billion remains the part of the story worth watching, and further updates are likely as more details are confirmed.