ISLAMABAD – Crisis hit Pakistan has decided to cut the defence budget by 35 percent, in another bid to tweak financial policies to get the much-needed IMF deal.
It was learnt that armed forces joined the government’s austerity measures and one-third of its expenditure will be axed. Spending on food allowance and restrictions on some other items in the defence budget would save more than Rs20 billion.
Armed forces have also restricted imports of non-operational items. In the latest measures, forces have decided to apt latest technology and virtual meetings for training, and reduction of all kinds of expenses to trim travel allowances.
As the country’s armed forces agreed to cooperate with the government to pass the financial crunch, the government has directed cabinet members to avoid luxury cars, and to travel in economy class to save $766 million on an annum basis.
The Ministry of Finance and the country’s armed forces spokesperson are yet to comment on the matter.
Strict measures come in wake of a balance of payment crisis as the government is making desperate measures to secure stalled bailout package of the International Monetary Fund.
The country’s foreign exchange reserves have nosedived in recent times, unable to cover a month’s imports.