Austerity steps to save only Rs17b

Finance Secretary Imdad Ullah Bosal, who also leads the government's negotiations with the IMF, told a National Assembly panel that the latest austerity package will produce savings of just Rs16.8 billion. The Express Tribune reported that his briefing to the Standing Committee on Finance came on Thursday. Bosal also sidestepped a question from PPP MNA Hina Rabbani Khar about whether the scheme amounted to little more than rhetoric.

Bosal acknowledged that targets tied to sugar liberalisation and to education and health outlays were missed, but described overall implementation as fairly strong. Three provinces have signed on to the sugar reforms, while one, which a committee member identified as Sindh, still has reservations. Meanwhile, the federal government still controls sugar imports and exports and permitted shipments of 308,000 metric tons in recent days, even though a national policy was due for approval by June.

Other unmet benchmarks include agricultural income tax collection, amendments to the Sovereign Wealth Fund Act, changes to the Companies Act 2017, and FBR revenue floors under the Tajir Dost and fixed tax schemes. The finance secretary also said the FBR missed its collection targets, so the federal government had to ask provinces to curb their expenses. The committee criticised slow publication of civil servants' asset declarations, a condition the secretary said would be fully implemented by December.