LAHORE (Kashmir English): Prime Minister Shehbaz Sharif on Monday approved multiple measures for the national austerity policy to stabilize the country’s economy in the wake of recent regional tensions.
According to the details, during the meeting, the Prime Minister was given a detailed briefing on the recent global tensions and their possible economic impacts on the country.
It was informed in the briefing that the current regional situation could affect Pakistan’s economy, especially energy supply and price fluctuations in global markets, in view of which the government is taking proactive measures.
Finance Minister Muhammad Aurangzeb briefed the meeting on saving petroleum products due to the global situation and austerity measures at the government level.
Ishaq Dar, Muhammad Aurangzeb, Ahsan Iqbal, Owais Leghari, Ali Pervez Malik, Attaullah Tarar, Mosaddeq Masood Malik, and Haroon Akhtar participated in the consultation meeting chaired by the Prime Minister.
In addition to them, representatives of the four provinces and senior government officials of the relevant institutions also attended, while the Chief Ministers of the four provinces and the Prime Minister of Azad Kashmirparticipated in the meeting through video link.
According to the sources, the federal cabinet has decided not to take two months’ salary in austerity measures. Proposals to provide relief to deserving and poor citizens were considered during the meeting, sources said.
The final course of action was decided in the meeting based on suggestions and recommendations based on austerity and simplicity.
Ban on official trips
The meeting has decided to impose a ban on official trips abroad by cabinet members, members of parliament, and government officials. The ban will apply to all officials of the federal and provincial governments.
It was decided that no official travel abroad will be allowed except for essential official trips. In case of foreign travel, all government officials will travel only in economy class. This ban will apply to all trips made with government or donor funding.
Purchase of new goods banned
The government has imposed a complete ban on the purchase of new durable goods until June 2026. IT purchases will be possible only after the examination of NITB and the approval of the Strategy Committee, the premier instructed.
Fuel for govt vehicles halved
It was also decided that fuel supply to all government vehicles will be reduced by 50 percent for the next 2 months. The 50 percent fuel supply will not be for operational vehicles like government buses, ambulances, motorbikes, etc.
The fuel austerity is expected to save Rs4.5 billion at the federal level. While it has also been decided to ban the purchase of new vehicles and to ground 60 percent of government vehicles.
Moreover, 60 per cent of government vehicles of the federal and provincial governments will be grounded for two months, while a complete ban on the purchase of all types of new vehicles will be imposed till June 2026.
Sources further said that the government has decided to continue the right-sizing program, real financial savings targets are likely to be set in the upcoming budget, teleconferencing and virtual meetings will be promoted to reduce expenses, a ban on official banquets will be imposed, and only exemptions will be granted for honoring foreign delegations.
Approval of a special committee will be mandatory before official seminars, trainings, and conferences. The committee will review the need and priority of the event, and instructions have been given to use government auditoriums and government facilities for such events, the Prime Minister directed.
Salary cut for ministers
The meeting further decided that all ministers, advisors, and assistants of the federal and provincial cabinets should voluntarily forgo two months’ salary and allowances.
It was decided to cut two days’ salary of government officials in grade 20 and above, with a salary of more than Rs 300,000 in all federal and provincial departments.
Similarly, a 20 percent cut was announced in the non-development budget of all federal and provincial departments for the fourth quarter of the financial year. The budget cut is expected to save Rs22 billion at the federal level.
