Virendra Pandit
New Delhi: A week after hundreds of wealthy Pakistanis thronged an upmarket mall in Lahore and queued up for hours to grab expensive branded coffees and pastries from Canadian food chain Tim Hortons, Islamabad announced on Wednesday some ‘austerity measures’ for ministers and officials to somehow impress the International Monetary Fund (IMF) to drop USD 1.6 billion in the South Asian country’s begging bowl.
Recently, Pakistan Defense Minister Khwaja Muhammed Asif publicly admitted that his country was already bankrupt and in default.
Days after the IMF mission to bailout Pakistan from financial mud returned on February 9 without announcing any decision, wealthy Pakistanis, ignoring their hungry people’s plight because of a 27 percent inflation, thronged a new outlet of the Toronto-based Tim Hortons opened to buy a small brewed coffee for PKR 350 (USD 1.30), or a large flavored one for twice as much.
The incident became highly controversial because of the wealthy people’s apathy in a bankrupt country where the average government-mandated minimum wage is PKR 25,000 (USD 94) a month.
As the IMF remains unimpressed even after the embattled Shehbaz Sharief Government introduced in Parliament fresh tax proposals to mop up PKR 170 billion by squeezing the poor—and also giving relief to the wealthy!—the Prime Minister on Wednesday said it will cut back allowances and travel expenses of ministers and advisers to save PKR 200 billion (USD 766 million) a year.
According to the media reports, the government has announced the following austerity measures:
- All cabinet members and advisers forgo their salaries and perks.
- All cabinet members are to return luxury cars which will be auctioned.
- No business class travel. Only economy class travel for domestic and foreign air travel. Cabinet members cannot take support staff during foreign trips.
- None will stay at five-star hotels during official trips abroad.
- Cabinet members to pay their own utility bills.
- Only one dish would be served at government functions. The one-dish policy will not apply to events hosting foreign guests.
- Government offices would open at 7:30 am in summer.
- Ministers and government officers are banned from buying luxury items, including new cars until June 2024.
- Cabinet members would be given only one security vehicle when needed.
- All government departments to cut expenses by 15 percent, and
- Cabinet members and government officials are now encouraged to hold teleconference calls in order to cut travel costs.
Also, all federal ministries and government offices have been directed to reduce expenditures by 15 percent.
“All cabinet members and advisors have voluntarily decided that they will not draw salaries or any other benefits from the state treasury and also pay their utility bills,” he said.
The belt-tightening comes as Islamabad – which is facing a balance of payment crisis – thrashes out a deal with the IMF to secure funds worth USD 1.6 billion pending since late last year over policy issues.
He also said the colonial period palatial official accommodation by district officers would be used better.
Islamabad, currently in dire straits and battling a wrenching economic crisis, has received financial assistance from the IMF at least 22 times since the 1950s and awaiting yet another bailout from the IMF.