ISLAMABAD: Caretaker Prime Minister Anwar-ul-Haq Kakar approved a number of austerity measures to stop unnecessary utilisation of public funds, including purchase of new cars, and creation of news posts under PSDP 2023-24, as the formation of the new government in Centre and provinces is days away, sources in Finance Ministry told Business Recorder.

New austerity steps await govt nod

According to Finance Division’s Expenditure Wing, it has been directed to convey that to ensure prudent utilisation of public money, caretaker Prime Minister has approved the following austerity measures for financial year 2023-24 with the immediate effect: (i) there shall be a complete ban on purchase of machinery and equipment from current budget, except for medical machinery/equipment; (ii) there shall be a complete ban on purchase of all vehicles except ambulance, buses for educational institutions, solid waste vehicles, tractors, fire fighting vehicles, motor bikes; and (iii) there shall be ban on creation of new posts under PSDP/current budget during financial year 2023-24.

Caretaker Prime Minister has also constituted Austerity Committee comprising caretaker Finance Minister (Chairperson), Secretary Finance (member), Secretary Planning, Development and Special Initiatives (member), Secretary Interior (member), Special Secretary Cabinet (member) and Additional Finance Secretary (Expenditure).

The Terms of Reference (ToRs) of the Committee will be as follows: (i) to periodically review and ensure implementation of austerity measures for financial year 2023-24; and (ii) to approve proposals for relaxation from the austerity measures on a case to case basis.

Copyright Business Recorder, 2024