Islamabad, September 7, 2024 – In a move aimed at addressing the nation’s financial challenges, the federal government has implemented a series of stringent austerity measures, effective immediately and lasting until further notice.
These measures, announced by the Finance Division, place sweeping restrictions on government expenditures, particularly with regard to the purchasing of vehicles and the creation of new jobs.
The Finance Division’s notification outlines several significant cost-cutting initiatives. A complete ban has been placed on the procurement of all types of vehicles, with a few notable exceptions. Only operational vehicles, such as ambulances, medically equipped units, fire-fighting trucks, buses and vans for educational institutions, solid waste vehicles, and motorcycles, are allowed under the new regulations. This restriction aims to reduce non-essential spending while ensuring critical services remain unaffected.
In addition to the ban on vehicle purchases, the government has also halted the procurement of machinery and equipment, except for essential sectors such as hospitals, laboratories, agriculture, mining, and schools. The Finance Division highlighted the need to prioritize resources for sectors that contribute directly to public welfare, health, and education.
The austerity measures also include a strict freeze on the creation of new government posts, including contingent-paid or temporary positions. Any positions that have remained vacant for the last three years will be abolished, signaling the government’s intention to streamline the public sector workforce. Furthermore, contingent-paid or temporary posts will not be continued beyond one year, reinforcing the government’s focus on reducing non-essential staffing costs.
Another critical aspect of the measures is the prohibition of non-essential international travel at government expense. Officials will no longer be able to undertake visits abroad unless deemed obligatory, thereby limiting expenditures associated with travel and accommodations.
The notification clarifies that certain exemptions will apply, particularly regarding the Public Sector Development Plan (PSDP) funded projects. Purchases of essential durable goods and the creation of posts for these projects will not be subject to the new restrictions, ensuring that development initiatives continue unimpeded.
This latest round of austerity measures highlights the government’s commitment to curbing public spending amidst growing economic challenges. However, it also raises concerns about the impact on public sector employment and the delivery of essential services. How these decisions will affect long-term economic stability remains to be seen.
