Govt to run idle departments in the budget

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Islamabad:

Days before the presentation of the federal budget, Prime Minister Shehbaz Sharif has instructed ministries to identify superfluous government organizations that can be run in the budget to save money and also to sort the issue of electricity sector.

Government sources told The Express Pakinomist that the prime minister, after taking a briefing on the new budget, amounted to about half a dozen committees to tackle larger pending questions. The committees are composed 10 days before the presentation of the budget in the National Assembly.

Finance Minister Muhammad Aurangzeb is scheduled to present the budget on June 2 at the National Assembly. The prime minister asked him to sort out all pending problems by Saturday.

The sources said that the ongoing discussions with the International Monetary Fund are expected to end today with the most crucial meeting between the IMF, the Federal Board of Revenue and the Finance Ministry. They said that FBR remained the thorny question in the negotiations and that a few meetings were also tense, where the IMF staff questioned the credibility of the obligations given by the FBR at the time of the staff’s level discussions in March.

The sources said that the prime minister, after the briefing on the budget, decided to pose the committees to solve the pending problems. He set the deadlines until May 24 for the ministries aimed at ending the budget exercise in time.

The sources said the prime minister has instructed all the ministries to review the pink book to identify superfluous and dysfunctional organizations and recommended settlement as part of the government’s degradation and cost -saving agenda. Deadline is May 24th.

The Prime Minister had put together a cabinet committee to reduce the size of the government, which took the exercise in five different phases. However, the results remained under the government’s own expectations.

The Federal Rights Committee is now expected to complete the review of the purpose and the rationale for various state -owned companies, which will be completed by the end of December 2025.

In a briefing to the Senate Standing Committee on Financing Last Monetor, the Cabinet Department stated that the drive to reduce public spending by abolishing positions would save RS36 billion annually. It also informed that one-fifth of the savings were secured by cutting the lowest salary-class-1 positions of gardeners, sweepers and peons.

About 40,000 positions have already been abolished or declared dying positions in the public sector. Out of these 11,558 positions, either abolished or declared, belonged to the lowest pay scale of dying Pakistan. This is equal to 29% of the total positions being abolished. The average pay scale one is RS42,888 and peons, gardeners and sweepers are recruited on this scale.

The committee was informed that the abolition of all these nearly 40,000 positions would save annually RS36.3 billion. But 19% or RS7 billion savings were contrary to the lowest pay scale 1.

The PM prime minister also instructed the Minister of Finance to submit contours of key budget initiatives and priorities that will form the narrative component of the budget. The instructions have also been issued to the government’s and the ministry’s advertising wings to ensure favorable narrative, the sources added.

In an important development, the Prime Minister also instructed the Minister of Planning and the Minister of Finance to hold consultative meetings with relevant ministries to consider the proposed plans, projects and initiatives for the financial year 2025-26.

The committee has been tasked with completing the job today (Friday) and ensuring that only these projects are added to the public sector development program that can be fully financed in the middle of the resources.

The sources said the Deputy Prime Minister Ishaq Dar is expected to be chairman of a meeting today (Friday) to end the next year’s PSDP. The development budget size remains uncertain as the Ministry of Planning and the coalition partners have called the proposed size of RS921 billion.

The sources said the prime minister asked the affected party that the agreed proposals, along with a summary of key initiatives from all important ministries, should be submitted for his consideration.

The sources said that one of the outstanding problems is how much money to be allocated for discretionary expenses during the parliament program. The original allocation for this fiscal year was about RS50 billion, but the chances are that spending will be higher than this, as opposed to cuts to other ministries.

For the next financial year, the government is facing pressure to assign a larger circle to these schemes, known as the SDGS performance program.

Ishaq Dar was chairman of the 45th meeting of the SDG Achievement Program (SAP). DAR emphasized the importance of involving communities in identifying basic development infrastructure projects. He emphasized the government’s decision to ensure that resources are utilized for the best interest in Pakistan’s citizens and adapted them with the sustainable development goals (SDGs).

It was decided that non -allocated funds will be surrendered, while the implementation agencies were required to utilize the funds allocated effectively and responsibly. However, the unused money is hardly RS2 billion, the sources said.

PM has also asked Finance and Power Ministries to sort the question of the Quantum of Power Subsidies. A meeting between both ministries took place on Thursday, but the question remained unresolved, an official said in the Ministry of Honesty.

The government has awarded RS1.04 trillion for power subsidies for the next financial year, which is equal to 0.8% of GDP. The sources said the power department asked for about RS180 billion more due to the proportion of the petroleum tax. Shehbaz Sharif had increased the tax rate with RS10 per year. Liter to reduce the cost of electricity by RS1.71 per Unit.

The Prime Minister instructed the Power Division and Finance Division to fine -tune the proposal for the award of Petroleum Development Levy (PDL) for the delivery of customs grants, the sources said.

PM asked the petroleum department to take lead and sort the question of the refineries for refineries. The petroleum department has been asked to sort the question in consultation with Finance Division and Revenue Division by Saturday.

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