PM forms committee on austerity measures

Seven-member body to review steps for saving Rs200b annually

ISLAMABAD:

The federal government has constituted a monitoring committee to oversee the implementation of austerity measures unveiled by Prime Minister Shehbaz Sharif last week in a bid to cut the government’s expenses.

The highlight of the austerity measures is the withdrawal of salaries and perks of the prime minister, ministers, special assistants and advisers along with a 15% cut in the expenses of all government departments.

According to a statement issued by the PM Office on Sunday, the committee includes 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.

The committee will review the implementation of the decisions taken during the federal cabinet meeting held on Feb 22, it said.

The principal accounting officer of each ministry, division, and department will submit recommendations before the committee by Feb 27 on the implementation of these decisions.

On Wednesday, PM Shehbaz announced a broad range of measures aiming to tighten the government’s belt but warned people to brace for more price hikes due to the tough conditions imposed by the International Monetary Fund for the release of its tranche.

The prime minister spoke to the media himself to unveil the austerity measures approved by the federal cabinet, expressing hope that the government would be able to take the masses out of the current economic crisis.

“There will be more inflation in the country,” he cautioned. However, he added, the government was taking measures to mitigate the sufferings of the poor by continuing various subsidies for them.

Austerity measures

Unveiling decisions of the federal cabinet, Shehbaz shared details of the ambitious austerity plan at the federal government level to save Rs200 billion annually by slashing expenditures. He stressed that the austerity measures would yield far-reaching results.

Read PM Shehbaz urges nation to adopt austerity measures

The measures announced by the prime minister include:

• All the federal cabinet members, advisers and special assistants will not draw salaries and other privileges;

• All members of the cabinet will pay the utility bills from their own resources and return all the luxury vehicles which will be auctioned;

• The cabinet members will use economy class during their visits abroad, while their assisting staff will not be allowed to accompany them;

• The cabinet members will not stay in five-star hotels during their foreign visits;

• All government divisions, departments, subordinate institutions and other entities under the federal government will slash their current expenditures by 15%;

• Purchase of luxurious vehicles will be banned;

• Senior federal government officers, utilising official vehicles besides availing the monetisation scheme, will return all such vehicles, while any officer violating this decision will be proceeded against;

• Extra security vehicles for cabinet members will be withdrawn and a committee headed by the interior minister will decide the matter in case of any threats;

• The travelling and daily allowances (TA & DA) of the officials will be reduced by utilising modern telecommunication facilities like holding Zoom conferences to save expenditures;

• All public housing in the city centres will be sold;

• No officer shall be allotted more than one plot and the excess plots shall be withdrawn;

• No new department will be created in the federal government and no new division will be created in any province;

• The government offices will be opened at 7:30 in the morning to save electricity in the summer;

• Low-energy devices will be installed at the government offices;

• Under the austerity policy, only tea and biscuits will be given at places like the Prime Minister’s House; and

• All government functions will have one dish.