ISLAMABAD: Pakistan’s Senate has returned Rs1.436 billion ($5.1 million) to the national treasury after implementing a wide-ranging austerity drive that exceeded a government savings target by 500 percent, the information ministry said in a statement on Monday.
The savings, equivalent to 15.9 percent of the Senate’s budget for the 2025-26 fiscal year, come as Pakistan prepares to unveil its annual federal budget this week while remaining under a $7 billion International Monetary Fund (IMF) program that has emphasized fiscal discipline and efforts to reduce public spending.
According to the statement, the expenditure cuts were implemented across the Senate Secretariat under the direction of Senate Chairman Syed Yousaf Raza Gilani as part of a broader program aimed at reducing administrative and operational costs.
“The savings exceed the target prescribed by the Finance Division by 500 percent and constitute 15.9 percent of the Senate’s total budget for FY 2025-26,” the statement said.
The Senate said one of the most significant measures was the suspension of 17 of 18 procurement projects that had previously been approved by its Finance Committee, generating substantial savings.
The statement said recruitment and other non-essential expenditures were rationalized, administrative overheads reduced and operational spending subjected to stricter oversight.
Authorities also curtailed the use of official vehicles, imposed limits on fuel consumption, discontinued refreshments at official meetings and increasingly shifted committee proceedings to digital and virtual platforms to reduce logistical costs.
All non-essential foreign travel was suspended, according to the statement.
The Senate said it had also decided against purchasing new official vehicles despite having a budget allocation of Rs60 million ($213,000) for that purpose during the current fiscal year.
In addition, the Senate Finance Committee unanimously agreed to forgo a proposed allocation to buy new vehicles to replace old government cars that had already been declared unfit for service, a move expected to save a further Rs140 million ($498,000), the statement said.
Pakistan has faced recurring fiscal pressures in recent years and remains engaged in economic reforms under an IMF-supported program approved in September 2024. The government has sought to increase revenues, curb spending and stabilize public finances after years of economic volatility, high inflation and external financing challenges.
The Senate said the Rs1.436 billion represented actual savings that had been surrendered to the national exchequer rather than projected reductions or deferred spending commitments.
The statement described the austerity drive as part of an ongoing effort to promote transparency, accountability and prudent management of public resources.
