ISLAMABAD: The cash-strapped Pakistan government decided on Wednesday that austerity begins at home, with PM Shehbaz Sharif, his federal ministerial colleagues, advisers and special assistants “agreeing” to forego their salaries and generous perks as the country pursues a staff-level agreement with the IMF for the release of $1. 2 billion in aid. “They (all federal and other ministers and their aides) will now pay their own utility bills, return all luxury vehicles and fly economy on domestic and foreign trips,” PM Sharif told the media.
He said the government’s support staff would no longer be allowed to go on state visits while cabinet members and government officers wouldn’t stay in five-star hotels during foreign trips. This, the PM claimed, would shave 15% off the current expenditure of ministries, departments and sub departments, translating into savings of Rs 200 billion annually. “Until June 2024, there will be a complete ban on purchase of luxury items and all types of new cars,” he said.
Sharif said that all government residences in city centres would be sold off, adding that no officer shall be allotted more than one plot and excess plots shall be taken back. He urged the chief justices of the HCs and the Supreme Court, besides all CMs, to adopt similar austerity measures. He said the cabinet decided that data pertaining to the Toshakhana (state depository) and the gifts received to date would be made public on its website. Any minister, including the PM, would not be allowed to retain gifts valued above $300.
On the government’s ongoing talks with the IMF, the PM said negotiations with the global lender were at the “last stage” and would be settled in a few days, although inflation could remain a persistent threat. “IMF wanted us to reduce subsidies, and that will cause further inflation. They want us to subsidise only the poor, but to determine this they have their own parameters,” he said.
Acknowledging that measures of entrenchment and simplicity would not reduce the burden of inflation, he reasoned that they would at least reduce the resentment “that is accumulated in the people because of what has been happening for the past 75 years”.
Sherry Rehman, minister for climate change, termed the measures “optics” and stressed the need for structural economic reforms. “Many of us will voluntarily surrender salaries in the interest of further austerity but it’s the size of the cabinet that must go down,” she said. The size of Sharif’s cabinet size rose to 85 earlier this month when he appointed seven more special assistants.
He said the government’s support staff would no longer be allowed to go on state visits while cabinet members and government officers wouldn’t stay in five-star hotels during foreign trips. This, the PM claimed, would shave 15% off the current expenditure of ministries, departments and sub departments, translating into savings of Rs 200 billion annually. “Until June 2024, there will be a complete ban on purchase of luxury items and all types of new cars,” he said.
Sharif said that all government residences in city centres would be sold off, adding that no officer shall be allotted more than one plot and excess plots shall be taken back. He urged the chief justices of the HCs and the Supreme Court, besides all CMs, to adopt similar austerity measures. He said the cabinet decided that data pertaining to the Toshakhana (state depository) and the gifts received to date would be made public on its website. Any minister, including the PM, would not be allowed to retain gifts valued above $300.
On the government’s ongoing talks with the IMF, the PM said negotiations with the global lender were at the “last stage” and would be settled in a few days, although inflation could remain a persistent threat. “IMF wanted us to reduce subsidies, and that will cause further inflation. They want us to subsidise only the poor, but to determine this they have their own parameters,” he said.
Acknowledging that measures of entrenchment and simplicity would not reduce the burden of inflation, he reasoned that they would at least reduce the resentment “that is accumulated in the people because of what has been happening for the past 75 years”.
Sherry Rehman, minister for climate change, termed the measures “optics” and stressed the need for structural economic reforms. “Many of us will voluntarily surrender salaries in the interest of further austerity but it’s the size of the cabinet that must go down,” she said. The size of Sharif’s cabinet size rose to 85 earlier this month when he appointed seven more special assistants.