ISLAMABAD: A high-level committee tasked with finding ways to rationalize the government structure and expenses suggested a contributory pension system for public sector employees while presenting its preliminary report to Prime Minister Shehbaz Sharif at a meeting focusing on the two objectives in Islamabad on Wednesday.
The development took place right ahead of the federal budget, scheduled to be presented by Finance Minister Muhammad Aurangzeb in the National Assembly later today.
Pakistan faces large, persistent fiscal deficits that contribute to macroeconomic instability and crowd out public and private investment.
The issue has also become significant in the context of the government’s efforts to secure another International Monetary Fund (IMF) bailout since a reduction in the government’s expenses can help reallocate funds to address more pressing economic issues.
“The initial report offered short-term and mid-term recommendations,” said a statement circulated by the PM Office after the meeting. “The committee recommended shutting down some public institutions, merging several, and transferring some to the provinces.”
“All vacant positions which have been unfilled for more than a year should be eliminated to save national funds,” the statement continued. “The committee also recommended introducing a contributory pension system for newly recruited government employees.”
The report also suggested the government impose restrictions on unnecessary official travel and promote teleconferencing.
Subsequently, the prime minister constituted a high-powered committee, asking its members to present a comprehensive action plan within 10 weeks.
He said the committee should utilize the best international practices to provide solid recommendations.
Sharif also expressed hope the committee’s recommendations would save the nation billions of rupees.
The committee that worked on the preliminary report was headed by the deputy chairman of the Planning Commission and had experts like Dr. Qaiser Bengali, Dr. Farukh Saleem and Muhammad Naveed Iftikhar.
Pakistan mulls contributory pension system to curtail expenditure amid IMF loan talks
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Pakistan mulls contributory pension system to curtail expenditure amid IMF loan talks
- A high-level committee presents its report to PM Sharif, recommending closure of some public institutions
- The committee says all vacant positions that have been unfilled for more than a year should be eliminated
World Bank president in Pakistan to discuss development projects, policy issues
- Pakistan, World Bank are currently gearing up to implement a 10-year partnership framework to grant $20 billion loans to the cash-strapped nation
- World Bank President Ajay Banga will hold meetings with Pakistan Prime Minister Shehbaz Sharif and other senior officials during the high-level visit
ISLAMABAD: World Bank President Ajay Banga has arrived in Pakistan to hold talks with senior government officials on development projects and key policy issues, Pakistani state media reported on Sunday, as Islamabad seeks multilateral support to stabilize economy and accelerate growth.
The visit comes at a time when Pakistan and the World Bank are gearing up to implement a 10-year Country Partnership Framework (CPF) to grant $20 billion in loans to the cash-strapped nation.
The World Bank’s lending for Pakistan, due to start this year, will focus on education quality, child stunting, climate resilience, energy efficiency, inclusive development and private investment.
"World Bank President Ajay Banga arrives in Pakistan for a high-level visit," the state-run Pakistan TV Digital reported on Sunday. "During his stay, he will meet Prime Minister Shehbaz Sharif and other senior officials to discuss economic reforms, development projects, and key policy issues."
Pakistan, which nearly defaulted on its foreign debt obligations in 2023, is currently making efforts to stabilize its economy under a $7 billion International Monetary Fund (IMF) program.
Besides efforts to boost trade and foreign investment, Islamabad has been seeking support from multilateral financial institutions to ensure economic recovery.
“This partnership fosters a unified and focused vision for your county around six outcomes with clear, tangible and ambitious 10-year targets,” Martin Raiser, the World Bank vice president for South Asia, had said at the launch of the CPF in Jan. last year.
“We hope that the CPF will serve as an anchor for this engagement to keep us on the right track. Partnerships will equally be critical. More resources will be needed to have the impact at the scale that we wish to achieve and this will require close collaboration with all the development partners.”
In Dec., the World Bank said it had approved $700 million in financing for Pakistan under a multi-year initiative aimed at supporting the country's macroeconomic stability and service delivery.
It followed a $47.9 million World Bank grant in August last year to improve primary education in Pakistan's most populous Punjab province.
