Pakistan Government Enforces Austerity Measures to Cut Non-Development Expenditures
Islamabad, The Gulf Observer: In an effort to reduce non-development expenditures, the federal government has announced a ban on six major spending categories as part of its ongoing austerity drive. These measures are aimed at curbing non-essential expenses and will remain in effect until further notice.
An official circular titled “Austerity Measures for Controlling Expenditures of the Federal Government” has been issued to various government bodies, including the President House, Prime Minister House, Auditor General of Pakistan, and relevant ministries. The circular, which follows a cabinet decision from August 27, 2024, outlines the following restrictions:
- Ban on Vehicle Purchases: The purchase of all types of vehicles is prohibited, with exceptions for operational vehicles such as ambulances, medically equipped vehicles, firefighting vehicles, buses and vans for educational institutions, solid waste vehicles, and motorbikes.
- Machinery/Equipment Procurement: There will be no procurement of machinery or equipment, except for those required by hospitals, laboratories, agriculture, mining, and schools.
- New Post Creation: The creation of new government posts, including contingent paid and temporary positions, is banned.
- Continuation of Temporary Posts: Temporary positions beyond one year will not be extended.
- Treatment Abroad: The government will no longer fund medical treatment abroad.
- Foreign Visits: All non-obligatory visits abroad involving government funding are banned.
Additionally, the circular mandates that all vacant government posts unfilled for the last three years will be abolished. However, the purchase of durables and the creation of posts under Public Sector Development Programme (PSDP)-funded projects are exempt from these restrictions.
The austerity measures introduced earlier this year in February 2023 will also remain in effect, unless modified or withdrawn by the Federal Cabinet. The government has urged all ministries and divisions to ensure strict compliance with these cost-cutting directives.
These steps are part of the government’s broader effort to streamline public spending and focus resources on essential development projects amidst financial constraints.
