PM to announce austerity measures soon

ISLAMABAD: Prime Minister Shehbaz Sharif will soon announce austerity measures that include cuts in the budget of all government entities; the withdrawal of certain perks and privileges of cabinet members, parliamentarians and government servants, including luxury vehicles and security/ protocol.

Informed sources said that the premier will appeal to the Chief Justice of Pakistan (CJP) and judiciary to contribute to the national austerity drive by reducing spending on the judiciary-- judges (both serving and retired), judicial officials and employees. He expects the judiciary to limit the maximum pension of retired judges to Rs500,000 per month besides reviewing the perks and privileges of judges (both serving and retired).

Regarding the cut in the non-combat defence budget, the Finance and the Defence ministries are presently finalising their recommendations, which are also expected to be announced by the prime minister. Judges and bureaucrats will be entitled to only one plot each while the prime minister’s package which was allowed during Musharraf's tenure to add to the perks of judges and top bureaucrats, including the provision of a second plot in Islamabad, will be withdrawn.

It is learnt that although the prime minister will not cut the size of his 85-member cabinet to 30 as was recommended by the National Austerity Committee, he would announce that half of the cabinet members will not draw any salary or facility from the public exchequer. There will be a 15 percent cut in the salaries of the remaining cabinet members.

Luxury vehicles allotted to the cabinet members will be withdrawn whereas the ministers will be allowed only one security vehicle each. The ministers as well as all government functionaries will travel in economy class. The ministers will not be accompanied by any support staff on their foreign visits. Only obligatory foreign travel of ministers, parliamentarians and government servants will be allowed.

There will be a 15 percent cut in the salaries of the parliamentarians and 25 percent reduction in the executive allowance of the government servants. No security vehicle will be given to any government servant, and if there is a need for it for anyone, the Interior Ministry will decide on a case-to-case basis.

All federal ministries, divisions, government departments and entities will cut their budget by 15 percent. The budget of Pakistani embassies and missions abroad will also be slashed by 15 percent. There will be a complete ban on purchase of new vehicles and durables. Official vehicles of all grade-20 and above government servants will be withdrawn as they are already drawing monetisation allowance.

There will be a complete ban on new recruitment whereas all those government posts have been vacant for the last three years will be abolished. No new government entity will be created whereas the Cabinet, Establishment and Finance divisions will review the size of the present Federal Secretariat to reduce the number of ministries and divisions.

In selected departments those enjoying free electricity will have a new rule. There will be no free electricity anymore for BS-17 and above officers in these departments whereas the officials in BS-1 to BS-16 will be monetised accordingly.

Discretionary grants, secret service funds of the ISI and IB will be capped; paperless environment and e-procurement will be introduced and use of digital systems and tele-conferencing will be promoted to reduce travelling and lodging expenditure. Pension reforms will be expedited whereas National Austerity Committee’s recommendations relating to subsidies and grants, state owned enterprises and development budget will be made part of the next budget.

It is said that an implementation committee was set up under Finance Minister Ishaq Dar to ensure the implementation of these austerity measures, but later the prime minister decided that he would head the body so that there is no dithering from any quarter in the enforcement of these measures.