The World Bank has raised concerns about Pakistan’s substantial state expenditures, which amount to a staggering 1,124 billion rupees. In response, the World Bank has proposed a series of strategic measures to curtail these expenditures and enhance financial efficiency.
One key recommendation is a reduction in various subsidies, with a potential savings of 167 billion rupees by streamlining the Tariff Differential Subsidy (TDS) and a further 20 billion rupees by either entirely eliminating or reducing subsidies on tubewells.
Additionally, the World Bank has suggested a gradual reduction in funds allocated to devolved ministries, a move that could potentially yield savings of up to 328 billion rupees. They have also advocated for the inclusion of a provincial share in the Benazir Income Support Program (BISP) expenses, potentially saving an additional 217 billion rupees.
Moreover, the bank has underscored the importance of redefining government expenditure on programs offering services in provinces, with potential savings estimated at a substantial 315 billion rupees. Lastly, they have proposed the cancellation of the wheat support price subsidy, which could result in savings of around seven billion rupees.
These recommendations from the World Bank aim to foster greater financial prudence and efficiency in Pakistan’s fiscal management.
