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
https://www
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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The prime minister said that the security vehicles with the government officials will also be withdrawn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 |
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