Govt enforces strict austerity

Austerity measures are being adopted to control government expenditures

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.

Last month, the government had decided to abolish regulatory bodies for devolved subjects, particularly health and education, eliminate transport facilities for all federal ministries and divisions, phase out non-executive staff at the Centre, and merge the aviation and maritime divisions with the defence ministry as part of its upcoming restructuring and austerity measures.

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 machinery and equipment needed for hospitals, laboratories, agriculture, mining and schools could be purchased.

The ministry also placed a ban on the creation of new posts and temporary posts, other than the positions 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.

There would be a complete ban on the appointment of staff to federal universities and hospitals except for academic staff that would be hired on a lump sum remuneration package without any future liability on the federal exchequer.

In addition, there would be a freeze on recruitment of grade 1-16 employees, i.e. support staff, across the federal government and gradually such posts would be abolished at the time of their vacancy.

The officer cadre would be required to embrace artificial intelligence and digital tools instead of their heavy reliance on support staff.

Provincial administrations have already implemented austerity measures to some degree. The Khyber Pakhtunkhwa finance department in April this year banned the creation of posts, the purchase of vehicles, participation in foreign training programmes and workshops, and the holding of seminars in five-star hotels when they implemented austerity measures.

The finance department said a ban had been slapped on foreign treatment at the provincial government’s expense, while extensions in the contractual period of project employees won’t be allowed unless justified by the relevant administrative departments.

Ironically, just a day ago, the Sindh government had approved the procurement of 138 luxurious double-cabin vehicles for its assistant commissioners posted across the province. It defended its decision to allocate Rs2 billion for the vehicles, saying ACs “are the backbone of the provincial administration”.