Pakistan’s Prime Minister Shehbaz Sharif has announced a range of austerity measures in a bid to tackle the country’s economic crisis. With rising inflation making the cost of daily necessities such as food too expensive for the common man, fingers have been pointed at Pakistan's elite. In an effort to save his country, Sharif has introduced new measures which are expected to save the government approximately 200 billion Pakistani rupees ($766 million) per year.

The announcement comes as the Pakistani government attempts to secure funds from the International Monetary Fund (IMF), following a balance of payment crisis that has left the country with foreign exchange reserves of just $3 billion.

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Talks between Pakistan and the IMF are set to conclude this week, with officials saying that the measures were part of the requirements the lender had asked Pakistan to fulfil before finalising a deal. Before the talks, the IMF had requested that Pakistan take a range of prior actions, including withdrawing subsidies, raising energy tariffs, and increasing revenue.

Here is a list of the austerity measures introduced by the Shehbaz Sharif government in Pakistan:

# All federal Cabinet members, advisors, state ministers and special assistants to forgo salaries and perks coming from the state treasury.

# Cabinet members to pay their own utility bills such as telephone, electricity, water and gas.

# Cabinet members and government officers to return all luxury vehicles, after which they will be auctioned.

# Ban on staying in five-star hotels during foreign trips for Cabinet members and government officers.

# Cabinet members and government officials to travel in economy for domestic and foreign trips. Support staff will not be permitted to tag along.

# Ban on the purchase of all luxury items, including new cars, until June 2024.

# Official government vehicles being used by senior ministry officials availing of car monetisation services will be recalled.

# Reduction in the number of foreign missions and offices of the Ministry of Foreign Affairs.

# Colonial period palatial official accommodation by district officers to be put to better use.

# Opening of government offices at 7.30 am in summer to conserve gas and electricity.

# One-dish policy at government functions, which will not apply to events held for foreign guests and dignitaries. At tea time, only tea and biscuits to be provided.

# Security vehicles will no longer be provided to government officers.

# Teleconferencing to be encouraged to reduce travel expenditure.

# Current expenditure of ministries, departments, and sub-departments to be reduced by 15 percent.

# Rulers, parliamentarians, bureaucrats and officials by heads of other governments and states and foreign dignitaries prohibited from retaining state gifts worth more than $300.

The Pakistani government will announce more austerity measures in the June budget. Addressing a Cabinet meeting in Islamabad, Sharif said that this was the need of the hour.

"We have to show that the time demands from us and that's austerity, simplicity and sacrifice," he said.

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The prime minister warned that Pakistan would be forced to cut power supply to malls and big markets if their energy conservation plan isn't in place and implemented.

The measures have been met with mixed reactions, with some suggesting that they may not be enough to address the country’s economic issues.

Former Prime Minister Imran Khan who now chairs the Tehreek-e-Insaf party asked rulers to bring the country's "looted" money back.

However, others have praised the government’s efforts to cut spending and address the country’s economic woes. The Finance (Supplementary) Bill 2023 was also recently passed, which seeks to impose an additional 170 billion Pakistani rupees in taxes, adding to the government’s efforts to boost revenue.

With agency inputs.

(Edited by : Shoma Bhattacharjee)

First Published:Feb 23, 2023 5:53 PM IST