Govt Austerity Drive to Save Only Rs. 17 Billion

Pakistan's federal government has implemented austerity measures as part of its International Monetary Fund (IMF) program, with the expected savings amounting to Rs. 16.8 billion according to Finance Secretary Imdad Ullah Bosal. The measures include reducing fuel allocations for official vehicles by 50% and cutting non-salary expenses by 5%, resulting in savings of Rs.

700 million over three months and Rs. 16.1 billion over one year, respectively. However, the government has not fully met several IMF conditions, such as sugar sector liberalization, health and education spending, and tax collection reforms in various sectors. These conditions have been identified as the primary reasons for the modest savings, with the government spending Rs. 3.1 trillion against the IMF target of Rs. 3.47 trillion.