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Federal cabinet likely to approve two holidays in a week

* Special meeting to approve austerity plan, sugar policy, gas load management strategy
* Austerity plan suggests cut in govt officials’ travel expenses by 70%

By Sajid Chaudhry

ISLAMABAD: The federal cabinet is expected to approve two holidays in a week for all public sector institutions in a special meeting today (Wednesday).

“All provincial governments have already agreed to the proposal,” a senior government official told Daily Times on Tuesday. The federal cabinet is also expected to place a massive cut on a daily expenditure of the president, the prime minister, federal ministers and chief ministers of the four provinces under the proposed austerity drive, to be approved in the special cabinet meeting.

The agenda of the special cabinet meeting, which would be chaired by Prime Minister Yousuf Raza Gilani, revealed that the prime focus of the meeting would be on the approval and implementation of austerity measures. According to the agenda, the austerity measures would be introduced to cut government expenses through administrative and management adjustment in the current system.

Austerity plan: The other three items on the agenda are the approval of a sugar policy, gas load management plan 2009-10 and the review of paddy procurement in the 2009 Kharif season.

The committee on Austerity Measures, headed by Finance Minister Shaukat Tareen, has suggested to the federal cabinet that government resources could be conserved if Saturday and Sunday are declared holidays from December 1, 2009 onwards.

Sources said Punjab and the NWFP had initially opposed the idea, saying that it would decrease the productivity of government officials and the general public would suffer.

“But the recent power crisis and terrorist attacks have compelled Punjab and the NWFP to accept the proposal,” a senior official said, adding that it was likely that the decision would be approved during the cabinet meeting.

“Working hours in all government offices would be from 8am to 4pm, with a one-and-a-half-hour prayer break on Friday,” the official said.

Travelling: The federal budget has allocated Rs 1 billion in travel expenses of ministers and senior officials. The austerity drive includes reduction of their travel expenses by 70 percent.

The committee suggested a reduction in the expenses of the prime minister as well. The austerity measures also include a reduction in the number of vehicles for officials by 50 percent, adding that only a maximum of seven vehicles should be used in an official entourage.

The committee also suggested restructuring state-owned enterprises including the Pakistan International Airlines, Pakistan Railways, Water and Power Development Authority (WAPDA), National Highway Authority and Pakistan Steel Mills. The restructuring includes the implementation of cost-cutting measures in state-owned corporations that are incurring losses, as well as measures to improve their productivity. This would help save around Rs 200 billion per year.

The meeting would also consider the approval of a new sugar policy.

The sources said it had been suggested in the sugar policy to ban the export of ‘gur’. “The government will not interfere with the pricing of sugarcane or sugar after the policy was approved,” the official said, adding that sugar mills would purchase sugarcane on the basis of its sucrose content instead of its weight.

In coordination with stakeholders, the ministries of Agriculture and Industries would set the price of four varieties of sugarcane based on their sucrose content.

Officials of the Agriculture Ministry said the policy had been accepted by all stakeholders, including the farmers and mill owners. “The price, based on sugarcane’s sucrose content, will eventually lead to more cultivation of high-quality sugarcane in the country,” the official said.

The natural gas load management plan, proposed by a sub-committee of the Economic Coordination Committee (ECC), is also likely to be approved.

The plan seeks five working days for industrial units, including CNG stations to conserve gas and power.

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