The Incumbent government is cutting Rs 200 billion expenditure in a year as it is struggling to meet tough conditions of IMF, the country which is close to default has lastly taken some tough measures and IMF will be looking closely at these developments in the country. Pakistan was already mired in an economic crisis when the PDM government took over last April.
When the PDM government took over from the ousted PTI government there were only two key priorities for the government: keep the economy afloat and the state functioning till the next general election rolled around.
But the current Prime Minister seems, had different plans. Eager to please his coalition partners. He went on an appointment spree, inducting 34 ministers, seven ministers of state, four advisers, and 40 special assistants to the PM, the last of whom were appointed just weeks ago.
These measures were generally welcomed as the perks and privileges of cabinet ministers and luxurious perks of bureaucrats will be cut and down sized. The bureaucrats can surely pay their own utility bills and pay for their own air tickets if they want to fly in business or first class, or stay at luxury hotels. Other measures include a ban on the import of luxury items and cars for over a year and entitlement to ‘only one’ official plot per government employee.
The number of people accompanying a government delegation overseas will be cut down and the team will not be allowed to stay in 5-star hotels. Cutting perks was a good step but still the cabinet is closing on the century with 85 cabinet members are far worse.
It is also worth noting that many officials are getting these perks that they are not entitled to, yet nobody is being punished for these abuses. Car privileges are the most usually abused, even though they are easy to spot. People taking multiple vehicles, including by availing the monetization scheme and official cars simultaneously, can easily be caught. There should be no leniency for those stealing from the public exchequer. Meanwhile, ‘luxury’ should be at personal expense. The expenditures of government institutions will be slashed by 15% and purchase of new cars has been banned till June 2024 is also a great step to revive the halted IMF deal.
It is little worrying that the IMF has so far declined to extend the country any further help considering how skewed its priorities have been and how stubbornly the powerful have been avoiding picking up the tab.
Indeed, IMF managing director Kristalina Georgieva’s recent remarks urging “a fairer distribution of the inflationary burdens by moving subsidies only towards the people who really need it” had made her sound more concerned about the country’s ordinary citizens than our own leaders.
The army, too, is reportedly drawing up proposals to slash non-combat expenditures. It remains to be seen how the provincial governments and the judiciary respond to the austerity measures.