Prime Minister Muhammad Shehbaz Sharif on Wednesday unveiled a massive austerity drive at the federal government level to slash expenditures while eyeing an ambitious plan to save Rs200 billion annually.
Addressing a news conference along with the members of his cabinet, the prime minister said the result of such a frugal exercise would yield far-reaching effects.
The prime minister said that the federal cabinet in today’s lengthy meeting had deliberated and the members decided voluntarily that all the federal cabinet members, advisers and special assistants would not draw salaries and other privileges.
All members of the cabinet would pay the utility bills from their own resources and would return all the luxury vehicles which would be auctioned, he said, adding the cabinet members would use economy class during their visits abroad while their assisting staff would not be allowed to accompany them. The prime minister further said the cabinet members, during their visits abroad would not stay in five stars hotels.
All the division, departments, subordinates and other government entities under the federal government would slash their current expenditures by 15 percent whereas the purchase of luxurious vehicles would be completely banned. The prime minister said the senior officers in the federal government who had been utilizing official vehicles besides, availing the monetization scheme would return all such vehicles.
He said this practice was being immediately banned and anyone found violating the ban would be proceeded against.
The prime minister said that extra security vehicles for the cabinet members would be withdrawn and a committee headed by the interior minister would decide the matter in case of threats. The TA, DA of the officials would be reduced by utilizing the telecommunication facilities like holding of zoom conferences which would be promoted to save expenditures.
The prime minister further announced that a single treasury account would be established. For the purpose of power and gas saving, the government offices would start functioning from 7.30am during the summer season while power-saving items would be used in the offices. At the federal government level, no division, unit, district, or tehsil would be created for administrative purposes. The government servants would not be allotted more than one plot and a committee would present a plan of selling out the palatial official residences constructed during the British era, in a transparent manner, fetching handsome amount for the cash-strapped national exchequer, he added.
The prime minister said during ceremonies and in official meetings, single dish would be used except for foreign dignitaries, adding during the 2023-24 fiscal budget, extra measures would also be announced including steps to reduce losses of the state enterprises.
The prime minister said the cabinet members should be appreciated for their sacrifice and goodwill gesture for their decision over salaries and privileges. Replying to a question, he said that they would announce a decision over the size of the cabinet in the next few days. All the members of the cabinet, in today’s meeting, had insisted upon slashing the size of the cabinet, he added.
The prime minister also appealed to the Chief Justice of Pakistan and all the CJs of the high courts and provincial chief ministers to take similar decisions under their jurisdiction. He also warned that the energy conversation plan was not being fully implemented and they would be forced to take steps to enforce it. About Toshakhana, the prime minister said the cabinet had decided that a gift worth $300 (Rs80,000) could be retained and others would be deposited in the Toshakhana while the record in this regard would be published on the website for the information of the general public.
He informed that an Independent third party would make the evaluation of these gifts. To a question, the prime minister said there was no shortage of wheat and flour in the country as PASCO had already imported wheat and the situation in the provinces should also improve. The prime minister elaborated that during the mini-budget, the government decided to tax the luxury goods in order to protect the common man who had already been burdened with the price hike. He said that the agreement with the International Monetary Fund (IMF) was in the final stages and hoped that would it be finalized soon as all the conditions had been met.
The prime minister said that the people could experience price hike as the subsidies were slashed, still the government was working hard to save the poor people.
Highlights of austerity steps
* Cabinet members to surrender their salaries, privileges
* Cabinet members to pay their utility bills from their own resources
* Luxury vehicles to be returned
* All cabinet members to travel in economy class
* 15pc cut in expenditures of all ministries and govt entities
* Complete ban on luxurious items till June 2024
* Security vehicles to be returned
* Video links meetings to be encouraged
* Govt offices to start functioning at 7:30 am
* Energy-saving items/gadgets will be used
* One dish policy for ceremonies and meetings to be enforced
* Markets to close at 8 pm
* Only a gift of Toshakhana worth $300 can be retained