Pakistan economic crisis: Shehbaz Sharif constitutes committee to monitor implementation of austerity measures

As Pakistan is mired in an unprecedented economic crisis and is unable to pay salaries to its government employees, Prime Minister Shehbaz Sharif formally constituted a committee to monitor the implementation of austerity measures ranging from one car per minister to slashing of funds for the Pakistani Army announced on February 22. 

The committee comprises Finance Minister Ishaq Dar, National Food Security and Research Minister Tariq Bashir Cheema, Law and Justice Minister Azam Nazeer Tarrar, IT and Telecommunications Minister Syed Aminul Haque, Education Minister Rana Tanveer Hussain, PM’s advisor on Kashmir and Gilgit-Baltistan Affairs Qamar Zaman Khaira and Minister of State for Power Hashim Notezai, Pakistani newspaper Dawn reported. 

Prime Minister Sharif announced a slew of austerity measures to tide over the economic uncertainty. These measures, as per Sharif, would lead to annual savings worth around PKR 200 billion. 

As per these measures, federal cabinet members including advisors and special assistants to the Prime Minister will have to forgo salaries and other privileges. Cabinet ministers and members will pay their water, electricity, and other utility bills and return all the luxury vehicles that will be auctioned later. 

Not only this, but cabinet ministers will also get only one security vehicle per minister. Ministers are also forbidden to stay in five-star hotels during foreign visits. All Pakistani government departments will have to slash their expenditure by 15 per cent while the purchase of luxury items including cars has been banned till June 2024. 

Not only this, no new administrative unit or division would be created for the next two years. Teleconferencing will be prioritised for meetings in order to cut travel expenses. These measures come at a time when Pakistan is hit by its worst economic crisis. Pakistan’s forex reserves have dropped to nearly $3 billion. 

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