ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif has asked his ministers and advisers to let go of their salaries, benefits and luxury cars and fly economy class as part of an austerity drive aimed at saving the government Pakistani Rupee (PKR) 200 billion a year, Pakistan based Dawn newspaper reported.
According to Dawn, the belt-tightening comes as the government is trying to resume a stalled loan programme of the International Monetary Fund (IMF) to secure funds worth USD 1 billion. The premier said an agreement with the Fund was in its final stages.
The expenditure cuts are part of an effort to prevent an economic crisis in the country. The State Bank’s foreign exchange reserves have fallen below a three-week import cover, and inflation remains consistently high.
“Far-reaching results of these (austerity) measures will come to the fore. We will save around over PKR 200 billion due to such measures,” the prime minister told reporters after a cabinet meeting on Wednesday, Dawn reported. Sharif said that though the measures would not give significant, immediate relief, they would give people a sense that the government realised their pain and agony.
He said these measures would be implemented immediately, adding that “additional steps” would be taken at the time of the budget for the new fiscal year. Some of the decisions included the withdrawal of salaries, security vehicles, perks and privileges.