The country would save Rs. 200 billion yearly, according to a series of austerity measures proposed by Prime Minister (PM) Shehbaz Sharif on Wednesday.
The announcement comes as Pakistan prepares to sign an agreement at the staff level with the International Monetary Fund (IMF) this week, which will open the door for eagerly anticipated credit flows from other bilateral and multilateral lenders.
Pakistan’s foreign exchange reserves have fallen to only $3 billion, hardly enough to cover three weeks of restricted imports, and the country is in desperate need of money as it fights an economic crisis that is only getting worse.
The IMF-mandated Finance (Supplementary) Bill 2023, which seeks to impose an additional Rs. 170bn in levies, was approved by the National Assembly on Monday.
List of Austerity Measures Taken by PM Shehbaz Sharif
- All federal cabinet members, advisers and special assistants to forgo salaries and other privileges.
- All cabinet members to pay their own utility bills.
- All cabinet members to return all luxury vehicles which will be auctioned.
- Only one security vehicle to be provided to cabinet members when needed.
- Cabinet members and government officers to travel in economy for domestic, foreign trips; support staff not permitted to tag along.
- Cabinet members to not stay in five-star hotels during foreign visits.
- All division, departments, subordinates and other government entities under the federal government to slash current expenditure by 15pc.
- Purchasing luxury items, all types of vehicles banned till June 2024.
- Official vehicles being used by government officers availing monetization scheme will be recalled.
- Security vehicles will no longer be provided to government officers.
- Teleconferencing will be promoted to reduce traveling expenses.
- No administrative unit or division or subdivision to be created for the next two years.
“Single treasury account” to be established. - Offices to open at 7:30am during summer.
- Government employees to not be allotted more than one plot.
- Only one dish will be served at all government events.
PM said, Cabinet members will now be responsible for paying their own utility bills, including those for electricity, gas, and water, in an effort to further reduce costs.
The choice is anticipated to save a sizeable sum of money, which might then be applied to other things like debt repayment.
Also, the government has issued a warning that, if necessary, it may electrify commercial centers after 5 PM. Energy will be conserved, and the national power grid will experience less stress as a result, PM added.
The PM added that whether travelling domestically or internationally, federal ministers would also use the economy class.
He said that cabinet ministers would not be permitted to stay in five-star hotels while travelling abroad, while support personnel would no longer be permitted to make state visits.
He also said that ministries, departments, and sub-departments would cut their present spending by 15%.
He stated that in light of this choice, the pertinent primary accounting officials would adjust their budgets as needed.
Given that the nation is also experiencing a fuel crisis, it is hoped that this action will assist in preventing power outages and ensuring that there is enough electricity.
As the strategy aims to boost the nation’s economy and provide a better future for all Pakistanis, Prime Minister (PM) Shehbaz has urged officials and citizens to abide by it.
These actions are anticipated to increase government sector productivity and efficiency while also saving money.
The federal cabinet agreed that no one would be permitted to retain state gifts worth more than $300, the premier remarked when speaking about the Toshakhana.
It was also disclosed by PM Shehbaz that the Toshakhana record would be made available to the general public. “It is a public record. Everyone has the right to know about it and ask [about it].”
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