Govt forms panel to implement austerity measures

Main purpose of committee is to cut expenditures to reduce fiscal debt

ISLAMABAD:

The federal government has constituted a 10-member special committee, headed by the federal finance minister, to monitor the implementation of the fiscal austerity policy announced for the current financial year 2022-23.

The Terms of Reference have also been issued for this committee. The committee will review the implementation of the measures announced under the austerity policy and seek recommendations from the principal accounting officers to reduce expenditure.

The move comes at a time when Pakistan is seeking the resumption of the International Monetary Fund’s Extended Fund Facility. One of the conditions includes reducing the fiscal debt for which cutting expenditures is vital.

According to a notification issued by the Ministry of Finance, the members of the 10-member austerity committee headed by the finance minister include federal ministers for planning, communications, commerce, and maritime affairs. It also includes the secretary of state for finance, secretary for planning, secretary for industries and production, and additional secretary (expenditure) for the Ministry of Finance.

The ToR of the committee state that the committee will effectively monitor the implementation of the measures announced under the austerity policy and review its implementation for which periodic meetings will be held.

The committee will seek recommendations from the principal accounting officers to reduce costs.

The committee will set up a separate committee to review the needs of autonomous bodies, government-owned enterprises (SOEs), corporations and authorities.

In addition, the committee will approve the relaxation of any measure to meet the target of the austerity policy.