The federal government has recently imposed a “complete ban” on specific expenditures like new vehicle purchases and state-funded medical treatment abroad in an effort to tighten its belt amidst financial constraints and criticism over its tough federal budget. The move has been made to secure a $7 billion economic bailout from the IMF.
Additionally, the government has decided to abolish regulatory bodies for devolved subjects, eliminate transport facilities for federal ministries, and merge certain divisions as part of restructuring and austerity measures. The Finance Division notification dated September 4 specifies the prohibited expenditures in detail, including the procurement of vehicles and machinery, creation of new governmental posts, and funding for medical treatments abroad using government funds.
Furthermore, the government plans to freeze recruitment of support staff and gradually abolish such positions, while shifting towards more automation and digital tools. Provinces like Khyber Pakhtunkhwa and Sindh have already implemented similar austerity measures.
Overall, the government is taking steps to control expenditures and ease the burden on the national treasury, with further announcements on austerity measures expected from the prime minister soon.
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