'Pakistan eyes Pension, BISP cuts' in upcoming budget to fix broken economy

ISLAMABAD – PML-N led coalition government is working on upcoming budget with stern measures on cards to fix $350 billion economy that faces massive balance of payment crisis.

Under Aurangzeb's financial planning, the government eyed to reduce expenses. These measures include a major cut in pensions, except for those given to defense, civil armed forces, and police personnel.

Furthermore, funding for provincial development projects will be halted as for this year, and the cost of the Benazir Income Support Programme (BISP) will be shared with provinces.

These recommendations were made by a panel to PM Sharif and are aimed at mending government expenditure by up to Rs300 billion per year.

The committee members further proposed to stop establsing new universities under the Higher Education Commission (HEC) and suggest that provincial governments share the financial responsibility for beneficiary programs including BISP program.

The committee also recommends closing all Sustainable Development Goals (SDGs) and provincial nature projects, funding only national-level projects from the next FY.

Federal subsidies provided for provincial subjects would be withdrawn.

Earlier, the country's new finance czar said the government will revisit the National Finance Commission Award, a mechanism for sharing resources between the center and provinces.