The government’s major initiative, the decision to reduce the expenditure on a large scale to reduce the deficit

The federal government has decided to reduce spending on a large scale in order to show a surplus of 600 billion rupees during the current financial year and meet the condition of reducing the financial deficit of the federation, while also starting new projects of the development program. will not be done.

In this regard, sources in the Ministry of Finance say that the caretaker government has taken this decision due to the difficult financial situation of the country and the Special Investment Facilitation Council has also supported the proposal.

Sources have said that in order to reduce the expenses, the government has decided not to start new projects of the development program of the current financial year and the financial needs of the ongoing development projects should be met.

According to the sources, it has been decided to participate in the subsidy of electricity, gas, wheat and fertilizer from the provinces in proportion to the population. At the request of the provincial governments, wheat and urea fertilizer were imported. and the provincial governments have not paid their share for the past several years.

Sources say that work is underway on the law for the participation of provinces in development projects and all subsidies, if necessary, the finance ministry will recommend changes in the National Finance Commission award.

According to sources, the federal government wants a significant reduction in expenditure before talks with the IMF in November, because under the IMF loan program, the provinces have to show a surplus of 600 billion rupees for the current financial year and if the IMF’s review mission recommends In this case, Pakistan will get another 700 million dollars.