Pakistan’s new coalition government has ordered a “massive cut” in budget expenditure across the board, including military spending, to cope with the rising cost of fuel and food subsidies, Ishaq Dar, finance minister, said in London yesterday.

It is also seeking to raise $3bn (€1.9bn, £1.5bn) or more from international lenders and foreign investors to bolster its foreign exchange reserves, because of a sharp deterioriation on the current account of its balance of ­payments.