Cabinet members to forgo salaries, perks amid govt's austerity endeavour
Pakistan
Cabinet members to forego salaries and perks amid austerity measures
ISLAMABAD (Dunya News) – Prime Minister Shehbaz Sharif on Wednesday unveiled austerity measures amid economic crunch and said the government was trying to save the public from scorching inflation.
Addressing a press conference while being flanked by leaders of allied parties on Wednesday, he said the ministers, state ministers and special advisers to the premier had decided to forego their salaries and perks. He said all ministers had also decided to pay their own utility bills.
Pakistan is facing an economic crunch and has been negotiating with the International Monetary Fund (IMF) for the next tranche of $1.1 billion. The international lender has set very tough conditions and demanded that Pakistan boosts its tax base, end exemptions for the export sector and raise energy prices.
The prime minister said, “All luxury cars being used by cabinet members are being called back and will be auctioned.” “Where needed, only one car will be provided for security.”
Mr Sharif said the deal with the International Monetary Fund (IMF) would be locked soon, adding that the “matters would be settled in a few days” but it would cause further inflation. He said Pakistan had fulfilled almost all of the IMF’s conditions.
The premier also announced that only one car would be provided for security purposes where necessary and federal ministers would also travel in economy class when going abroad on state visits. He added that the government had passed a mini-budget under which new taxes would be levied on big corporations, adding that these measures would protect the common man from inflation to some extent.
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Cabinet adopts austerity policy
Earlier today, the session of the federal cabinet was held under Prime Minister Shehbaz Sharif in which the austerity policy was adopted under which the ministers decided to cut down perks and incomes. It was decided that the members of the cabinet and the government officers would not travel by business class.
The PM said the simplicity policy was the first priority of the federal government and the IMF agreement would take place soon while mentioning the tough decisions that were required to steer the country out of the current quagmire. He said the poor people had always given sacrifices for the country and now the affluent people had to make efforts for the betterment of the economy.
PM Shehbaz urged the ruling class including federal ministers, advisers and bureaucrats to practice austerity with a view to manifesting the government’s sincere efforts to address the pervading challenges.
“As the whole nation goes through an ordeal of imported inflation, IMF conditionalities or the negligence of the previous government, we have to show to the people what is the need of the hour. That is austerity, simplicity and passion for sacrifice,” the prime minister told the cabinet members while chairing the meeting.
In his televised remarks at the cabinet meeting with austerity measures on agenda, the prime minister said since the creation of Pakistan 75 years ago, it was the poor who always suffered, starting from the wars of 1965 and 1971, 2005 earthquakes or the floods of 2010 and 2022. He said the poor people faced inflation and had to suffer the hardships of feeding their family members.
The premier said that the elite class also contributed to supporting the poor during the tough times but everyone did not fulfill their responsibility. He told the cabinet members that the IMF program was also reaching finality with a couple of items remaining. “Today, we have to learn the lesson from the past and move ahead. The nation looks at the coalition government which stood united and made the decisions to put the country on the track of economic development. This is not an easy task as it was going through difficult challenges,” he remarked.
Calling for showing “leadership by personal example”, the prime minister urged the ministers, advisor, special assistants and bureaucrats and government officials to practice austerity first and then expect the same from the elite and resourceful class.
He appealed to the cabinet members to “stand up and accept the challenge” to let the nation, as well as the world, know that the Pakistani nation was very strong and that the government would take all possible steps without any confusion.
“This message must be conveyed today before we get back to our offices and homes. The whole world should know that the government is setting an example. The government has tried with sincerity to address the challenge,” the prime minister commented.
He said though the government’s austerity initiative would not reduce the burden of inflation on the poor, it would lessen the anguish and give them a feeling that the government, politicians, and bureaucracy was with them from the core of their heart.
Cabinet size
On the other hand, Minister for Climate Change Sherry Rehman said that structural reforms and fundamental economic reforms were needed rather than “optic” measures.
In her latest Tweet, she said that many of us will voluntarily surrender salaries in the interest of further austerity but it’s the size of cabinet too that must go down.
— SenatorSherryRehman (@sherryrehman) February 22, 2023
She further wrote, “Good that my colleague Ahsan Iqbal has surrendered his official SUV. I put on cabinet record today that as minister I have continued from day one to use my own personal vehicle. No security vehicle to surrender as well. Yet these cuts are optics. We need structural reform.”
