Pakistan has tabled its plan to International Monetary Fund (IMF) to reduce government expenditures by Rs300 billion in a year, which also includes a complete ban on development schemes, ARY News reported on Monday, citing sources.
According to media reports the plan aims to reduce expenditures in the next fiscal year, with the federal government not establishing any new universities and provinces funding varsity under their jurisdiction.
In the next fiscal year, a contributory pension scheme is planned for all departments, except defence and police personnel. The scheme came as the global lender has asked the government to review its pension system.
Sources added that there is a possibility of a complete ban on development schemes for parliamentarians from the next fiscal year, and the federal government will not fund ongoing projects with the cooperation of provinces.
Furthermore, the government is also planning to abolish posts from grade 1 to 16, which have been vacant for over a year.
Earlier in the day, it was reported that the International Monetary Fund (IMF) and Pakistan will begin policy-level talks on the bail-out package today.
The Fund had asked Pakistani authorities to impose tax on monthly pensions exceeding Rs 100,000.
The monetary fund demanded stringent economic measures for new loan program and legislation aimed at taxing wealthy pensioners.
