Govt embarks on drive to contain its expenditure

ISLAMABAD: The Finance Division has notified austerity measures, including ban on purchase of all types of vehicles, procurement of machinery/ equipment and creation of new posts for controlling expenditures of the federal government.

The notification issued by the division stated that in pursuance of the Cabinet’s decision dated 27.8.2024, the following austerity measures are notified till further orders;

PM unveils his approach to economic austerity

i) There shall be a complete ban on the following expenditures with respect to the current budget.

• a) Purchase of all types of vehicles with the exception of operational vehicles such as ambulances and other medically equipped vehicles, fire fighting vehicles, buses and vans for educational institutions, solid waste vehicles and motorbikes;

• b) Procurement of machinery/ equipments with the exception of those required for hospitals/ laboratories/ agriculture/ mining/ schools;

• c) Creation of new posts including contingent paid/temporary posts;

• d) Continuation of contingent paid/temporary posts beyond one year;

• e) Treatment abroad at government expense; and

• f) All non-obligatory visits abroad where government of Pakistan funding is involved.

The notification further stated that the austerity measures notified by the Cabinet Division dated 28.2.2023 will remain applicable unless modified or withdrawn by the Federal Cabinet.

All posts lying vacant for last three years shall be abolished. Purchase of durables and creation of posts under Public Sector Development Programme (PSDP) funded projects shall be exempted from the application of this ban.

All ministries/Divisions are requested to disseminate the above instructions to all departments under their administrative control for strict compliance, the notification concluded.

Copyright Business Recorder, 2024