PM announces sweeping austerity measures; ministers to pay own bills, forego salaries


While eyeing an ambitious plan to save Rs200 billion annually, Prime Minister Shehbaz Sharif announced on Wednesday that federal ministers, advisors, and assistants will not receive salaries and other benefits as part of the government's austerity measures

Speaking to the press after a meeting of the federal cabinet in Islamabad, the prime minister stated that all federal ministers would now be required to pay their own electricity, gas, and water bills

The move is part of the government's broader efforts to cut expenses and reduce the budget deficit

PM Shehbaz emphasised that these measures were necessary to address the country's economic challenges, including the rising inflation and debt

He noted that the government was committed to restoring economic stability and promoting growth

The decision to reduce ministerial benefits comes amid ongoing economic challenges for Pakistan, which is facing a high inflation rate and a large budget deficit

The government has already implemented a number of austerity measures, including reducing development spending and raising taxes

Also read: PM Shehbaz urges nation to adopt austerity measures Prime Minister Shehbaz has emphasised the need for all citizens, including government officials, to do their part in addressing the country's economic challenges

He has urged Pakistanis to embrace a culture of frugality and to work together to overcome the country's economic difficulties

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official/videos/754582936102250 When asked how the cabinet members will survive, PM Shehbaz said that they will live their lives as they used to live [before coming into power]

"Luxury vehicles are being recovered from the cabinet members and they will be auctioned and the proceeds will go to the national exchequer," he added

Shehbaz said that only one security vehicle would be provided to the ministers as per requirement whereas they will travel in economy class both on foreign and domestic visits

He said that the support staff will not be allowed to accompany on foreign tours whereas the cabinet members will not stay in five-star hotels during their foreign visits

"15 per cent of expenditures will be cut in all ministries, divisions and related institutions," he added

He said that there will be a complete ban on purchasing new vehicles or luxury items till June 2024

The prime minister said that the security vehicles with the government officials will also be withdrawn

The prime minister announced that all government residences in city centres will be sold, adding that no officer shall be allotted more than one plot and excess plots shall be taken back

He said that government meetings will be preferred on video link to reduce travel expenses, adding that no new department will be constituted

The cabinet has decided that offices will be opened at 7:30am to save electricity in summer while energy-saving appliances will be installed in government offices

Under the austerity policy, only tea and biscuits will be served at places like Prime Minister House

The premier also urged chief justices of high courts and Supreme Court and all chief ministers to adopt similar austerity measures

IMF talks Talking about the government's ongoing talks with the International Monetary Fund (IMF), Shehbaz said that the government has fulfiled almost all prior conditions and an agreement with the global lender was expected soon

He, however, said that IMF wanted the government to reduce subsidies, warning that a new wave of inflation might engulf the country

"IMF asked us to reduce subsidies

They want us to subsidise only the poor but [to determine this] they have their own parameters," he added

He said that since the creation of Pakistan 75 years ago, it were the poor who always suffered, starting from the wars of 1965 or 1971, earthquakes of 1953 and 2005, or the floods of 2010 and 2022

Also read: Tax the rich, help the poor, IMF advises Pakistan "I was told that we have to listen to IMF

it is necessary for us

We have to fulfil IMF conditions

But God willing we will get rid of it (IMF programme) one day," he said

He said that the government will increase the volume of Benazir Income Support Programme (BISP) by 25 per cent

The premier said that the IMF programme will create some problems in the short term, hoping that the coalition government will take Pakistan out of the prevailing crisis

He further said that the nation needed to adopt a collective approach for economic stability in the country

Toshakhana The prime minister said that the cabinet has decided that the data of Toshakhana regarding the gifts received to date will be made public on its website

He further said that any minister including the prime minister cannot keep any gift over the value of $300



Date:23-Feb-2023 Reference:View Original Link