Govt notifies sweeping austerity measures

Purchase of new vehicles, machineries, creation of new posts, unnecessary foreign trips banned

ISLAMABAD:

The federal government introduced several belt-tightening measures in order to reduce expenditures of various government departments, including abolition of vacant positions, a ban on the purchase of new vehicles and machineries, as well as officials’ foreign travels.

According to a finance ministry notification issued on Friday, the austerity measures were being adopted to control government expenditures. Under these measures, the government banned the purchase of new vehicles and equipment for various government departments.

The notification said that only operational vehicles such as ambulances and other medical equipment vehicles, fire engines, buses and vans for educational institutions, solid waste vehicles and motorcycles could be purchased in case of need.

Similarly, the purchase of machinery and equipment for various government departments would also be prohibited. The notification said that only that machinery and equipment could be purchased if needed for hospitals, laboratories, agriculture, mining and schools.

The ministry also placed a ban on the creation of new posts and temporary posts, other than the positions in the under the Public Sector Development Project (PSDP)-funded projects. According to the notification all the posts lying vacant for the last three years would be abolished.

Similarly, the procurement of goods under the PSDP-funded projects would be exempted from the application of this ban. Besides, there would be a complete ban on treatment abroad at government expense and all unnecessary foreign trips.