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Cabinet approves major austerity measures
ISLAMABAD: The federal cabinet approved on Wednesday a number of austerity measures, including a 40 per cent reduction in foreign visits by the president and the prime minister, reducing utilities expenses of the Presidency and the Prime Ministers House by 25 per cent and capping them for three years and curtailment of the number of ministries and divisions.
A meeting of the cabinet, presided over by Prime Minister Yousuf Raza Gilani, discussed only austerity measures did not take up a proposal for a five-day-work week. The number of ministries will be reduced to 30 from 42 and that of divisions to 37 from 52. The cabinet approved phased privatisation of public sector organisations, including Wapda, Pepco, Railways, PIA and Pakistan Steel Mills, after their restructuring. The government is providing Rs252 billion as subsidy per year to these organisations.
Finance Minister Shaukat Tarin, who heads the Austerity Committee, and Information Minister Qamar Zaman Kaira told reporters that the prime minister would soon set up a committee to formulate short-, medium- and long-term strategies to ensure effective implementation of the austerity measures.
The finance minister said that net savings would be worked out after implementing the measures.
The Pay and Pension Commission, he said, had been asked to come up with proposals for improving the salary structure and monetisation of all perks and privileges of government employees. Expenditures on foreign tours by ministers have been cut by 30 per cent and entertainment by 30 per cent. Only one dish will be served at government lunches and dinners.
The number of planes in use of VVIPs will be reduced and eventually handed over to a charter company which may operate them on a semi-commercial basis.
The practice of performing Haj at government expense will be stopped.
The Pay and Pension Committee will look into details of a proposal for a ceiling on official telephone connections.
There will be no VIP lounges and wards in government hospitals.
Entourage of the president and the prime minister will be restricted to seven vehicles and that of governors and chief ministers to six.
Federal ministers will use cars of up to 1800cc and provincial ministers of up to 1600cc. Locally-manufactured cars and armoured vehicles will be used for official purposes.
Video-conferencing will be promoted as substitute for visits. Pakistani diplomatic missions abroad will represent the country at meetings, seminars and conferences.
Solar and wind power and coal will be introduced as alternative energy sources.
Ministries, divisions and institutions will have to seek quarterly approval of their supplementary grants, instead of putting them at the end of a financial year in order to enhance parliamentary oversight on expenditures.
ISLAMABAD: The federal cabinet approved on Wednesday a number of austerity measures, including a 40 per cent reduction in foreign visits by the president and the prime minister, reducing utilities expenses of the Presidency and the Prime Ministers House by 25 per cent and capping them for three years and curtailment of the number of ministries and divisions.
A meeting of the cabinet, presided over by Prime Minister Yousuf Raza Gilani, discussed only austerity measures did not take up a proposal for a five-day-work week. The number of ministries will be reduced to 30 from 42 and that of divisions to 37 from 52. The cabinet approved phased privatisation of public sector organisations, including Wapda, Pepco, Railways, PIA and Pakistan Steel Mills, after their restructuring. The government is providing Rs252 billion as subsidy per year to these organisations.
Finance Minister Shaukat Tarin, who heads the Austerity Committee, and Information Minister Qamar Zaman Kaira told reporters that the prime minister would soon set up a committee to formulate short-, medium- and long-term strategies to ensure effective implementation of the austerity measures.
The finance minister said that net savings would be worked out after implementing the measures.
The Pay and Pension Commission, he said, had been asked to come up with proposals for improving the salary structure and monetisation of all perks and privileges of government employees. Expenditures on foreign tours by ministers have been cut by 30 per cent and entertainment by 30 per cent. Only one dish will be served at government lunches and dinners.
The number of planes in use of VVIPs will be reduced and eventually handed over to a charter company which may operate them on a semi-commercial basis.
The practice of performing Haj at government expense will be stopped.
The Pay and Pension Committee will look into details of a proposal for a ceiling on official telephone connections.
There will be no VIP lounges and wards in government hospitals.
Entourage of the president and the prime minister will be restricted to seven vehicles and that of governors and chief ministers to six.
Federal ministers will use cars of up to 1800cc and provincial ministers of up to 1600cc. Locally-manufactured cars and armoured vehicles will be used for official purposes.
Video-conferencing will be promoted as substitute for visits. Pakistani diplomatic missions abroad will represent the country at meetings, seminars and conferences.
Solar and wind power and coal will be introduced as alternative energy sources.
Ministries, divisions and institutions will have to seek quarterly approval of their supplementary grants, instead of putting them at the end of a financial year in order to enhance parliamentary oversight on expenditures.
and Zardari
