World Bank Advises Cutting Government Expenditure

World Bank Raises Concerns Over Pakistan's State Expenditures

The World Bank has expressed reservations about Pakistan's state expenditures amounting to 1,124 billion rupees, according to sources reported by ARY News on Monday.

The WB Suggests Subsidy Cuts

Sources indicate that the World Bank has advised the government to make significant cuts in various subsidies in order to save money. One of the key recommendations is to reduce the Tariff Differential Subsidy (TDS), potentially saving 167 billion rupees.

Subsidy on Tubewells Under Scrutiny

Additionally, the World Bank has called for a complete withdrawal of subsidies on tubewells or a substantial reduction, which could result in savings of 20 billion rupees.

Reduction in Funds for Devolved Ministries

The World Bank has demanded a gradual decrease in funds allocated for the devolved ministries, with the potential to save up to 328 billion rupees at the federal level.

Provincial Inclusion in Benazir Income Support Program (BISP)

The World Bank also advises the inclusion of a provincial share in the Benazir Income Support Program (BISP) expenses, which could save the federal government as much as 217 billion rupees.

Redefining Expenditure in Provincial Programs

The government is encouraged to reconsider its funding in programs that provide services within provinces, potentially saving 315 billion rupees by redefining its expenditure in this area.

Cancellation of Wheat Support Price Subsidy

Another recommendation from the World Bank is the cancellation of the wheat support price subsidy, which could result in savings of seven billion rupees.

The World Bank's concerns and recommendations highlight the need for Pakistan to address its state expenditures and subsidies to achieve financial stability.