In a thorough road map, the Cabinet Committee on Economic Recovery has laid out a strategy to save Rs 14 trillion in expenses.
A modification plan has been established for untargeted subsidies and grants for lower expense, decrease in PSDP and ADPs, and the freezing or reduction of salaries, pensions, or allowances under this plan. While fresh programmes will be prohibited and supplemental grants won’t be permitted, proposals are also being considered.
Under austerity measures, the government has concentrated on feasible “Public-Private Partnership” projects and finalised a number of ideas, although it is unclear when they would be implemented at the federal or provincial levels.
According to information, the Cabinet Committee on Economic Revival has envisioned a thorough road plan that involves freezing wages or pensions as well as lowering the officer-staff ratio in an effort to decrease spending by Rs 14 Trillion.
The interim administration has finalised many recommendations for the Jari Plans to execute austerity measures, and the CCER has requested that the federal or PROVINCIAL governments progressively lower the officer-staff ratio to 3:3 as part of these recommendations. But CCER doesn’t say how long it’s given the federal and provincial governments to carry out this ambitious goal.
The last budget of the current fiscal year includes a subsidy bill of Rs 10.64 billion, of which Electric Sector Subsidies are 9 They intend to utilise a substantial chunk equivalent to 1 trillion 70 billion rupees. The government has established a strategy to examine Untargeted Subsidies or Grants to minimise spending.
This enormous money has to be thoroughly examined since the GOVT has budgeted an allocation of 14 TRILLION rupees in the form of grants to various organisations or Departments.
The government has suggested reducing PSDP at the federal level, implementing annual strategies for growth at the provincial level to halt new programmes, or transferring all programmes of this nature to federal agencies.
According to a study by the FM, the federal government may save Rs 315 billion for the current fiscal year by focussing on PSDP Schemes as a result of the FEDERAL Mandate, the Caretaker Government said. In order to save Rs 328 billion, the government has also planned to phase out federal funding for devolved ministries and cut back on their operating expenses. Instead, it would concentrate on successful PPP projects.
According to the government’s statement on the IMF’s condition, 50% of the federal PSDP portfolio is anticipated to be transferred to the P3A Pipeline, a public-private partnership authority. Supplemental grants are not permitted for the length of the IMF’s three billion dollar standby arrangement programmed.