Govt bans six major expenditures under austerity drive

ISLAMABAD: The government has banned six major expenditure items under its austerity drive to cut down non-development expenditures, including non-obligatory foreign visits at the expense of the national exchequer.

An official circular titled “Austerity Measures for Controlling Expenditures of the Federal Government” has been sent out to the President House, PM House, Auditor General of Pakistan and relevant ministries stating that in pursuance of the cabinet’s decision for case No. 232/28/2024 dated 27.8.2024, the following austerity measures are notified till further orders:

i) There shall be a complete ban on the following expenditures with respect to the current budget.

a) Purchase of all types of vehicles with the exception of operational vehicles such as ambulances & other medically equipped vehicles, firefighting vehicles, buses & vans for educational institutions, solid waste vehicles and motorbikes;

b) Procurement of machinery/equipment with the exception of those required for hospitals/laboratories/agriculture/mining/schools;

c) Creation of new posts including contingent paid/temporary posts;

d) Continuation of contingent paid/temporary posts beyond one year;

e) Treatment abroad at government expense; and t) All non-obligatory visits abroad where GoP funding is involved. ii) The Austerity Measures notified by the Cabinet Division vide O.M. Nos. 7-1/2023- Min-I and No. 9-148/2002-Min-II dated 28.2.2023 will remain applicable unless modified or withdrawn by the Federal Cabinet.

iii) All vacant posts for the last three years shall be abolished.

Purchase of durables and creation of posts under PSDP-funded projects shall be exempted from the application of this ban.

All Ministries/Divisions are requested to disseminate the above instructions to all departments under their administrative control for strict compliance.