ISLAMABAD: Pakistan has submitted an austerity plan to the International Monetary Fund (IMF) to reduce spending.
A round of policy-level negotiations took place between Pakistan and the International Monetary Fund in which the plan was presented.
In the plan presented to the IMF by the Ministry of Finance, it is stated that the federal government will reduce the expenditure of more than 300 billion rupees in a year.
There will be a complete ban on buying new vehicles by federal ministries. All posts in Grades I to 16 vacant for one year will be abolished.
The federal government will not fund the development projects of the provinces and will only provide resources for important and national development projects.
The infrastructure projects will be done under Public Private Partnership. The provincial governments will self-fund the universities under their jurisdiction. Apart from defense and police, a voluntary pension scheme is also being considered for new recruits from the next financial year.
