ISLAMABAD: The federal government has established a monitoring committee to oversee the implementation of austerity measures announced last week by Prime Minister Shehbaz Sharif in an effort to reduce government expenditures.
The most notable aspect of the austerity measures is the elimination of salaries and perks for the prime minister, ministers, special assistants, and advisors, as well as a 15% reduction in the expenditures of all government departments.
According to a statement released by the PM Office on Sunday, the committee consists of Finance Minister Ishaq Dar, Minister for Education Rana Tanveer Hussain, Information Minister Syed Ameenul Haque, Law Minister Azam Nazeer Tarrar, Food Security Minister Tariq Bashir Cheema, PM’s adviser on Kashmir Affairs and Gilgit-Baltistan Qamar Zaman Kaira, and Minister of State for Power Division Hashim Notezai.
According to the statement, the committee will review the implementation of the decisions made during the federal cabinet meeting held on February 22.
The chief accounting officer of each ministry, division, and department will present recommendations to the committee regarding the implementation of these decisions by February 27.
Prime Minister Shehbaz announced a wide range of measures aimed at tightening the government’s belt on Wednesday, but cautioned the populace to brace for additional price increases due to the stringent conditions imposed by the International Monetary Fund for the release of its tranche.
The prime minister addressed the media personally to announce the austerity measures approved by the federal cabinet, expressing optimism that the government would be able to pull the populace from the current economic crisis.
“The country will experience greater inflation,” he warned. Nevertheless, he added, the government was continuing various subsidies for the poor in order to alleviate their suffering.
Austerity Plan
Shehbaz revealed the decisions of the federal cabinet and elaborated on the ambitious austerity plan of the federal government to save Rs200 billion annually by reducing expenditures. He emphasised that the austerity measures would produce significant outcomes.
The measures outlined by the prime minister include the following:
• No federal cabinet members, advisers, or special assistants will receive compensation or other benefits.
• Each cabinet member will pay his or her own utility bills and return all luxury vehicles to be auctioned off;
• During international trips, cabinet members will travel in economy class, but their assistants will not be permitted to accompany them.
During their international travels, cabinet members will not stay at five-star hotels.
• All federal government divisions, departments, subordinate institutions, and other entities will reduce their expenditures by 15%;
• Luxury vehicle purchases will be prohibited;
• Senior federal government officers who use official vehicles in addition to the monetisation programme will return all such vehicles, and any officer who violates this decision will face disciplinary action;
• Additional security vehicles for cabinet members will be withdrawn, and a committee led by the minister of the interior will decide the matter in the event of threats;
• The travelling and daily allowances (TA & DA) of the officials will be reduced by utilising modern telecommunication facilities, such as Zoom conferences, in an effort to reduce costs;
• The sale of all public housing in urban cores;
• No officer will be allotted more than one plot, and the excess plots will be withdrawn;
• No new departments will be created in the federal government, and no new divisions will be established in any province.
• In order to save electricity during the summer, the government offices will open at 7:30 a.m.
• Government offices will have low-energy devices installed;
• Under the austerity policy, only tea and biscuits will be served at locations such as the Prime Minister’s residence; and
• A single dish will be served at all official functions.
