ISLAMABAD: The federal government has constituted a 10-member committee to ensure the implementation of austerity measures, as it seeks to cut expenditures to reduce fiscal debt, Dawn.com reported on Friday.

According to a Finance Division notification dated July 7, the finance minister will head the committee as its chairman. Its members will include the ministers for planning, communication, commerce, maritime affairs and the minister of state for finance. The secretaries of the ministries of finance, planning and industries will also be a part of the committee besides the additional finance secretary.

The terms of reference of the committee include periodically reviewing and ensuring the implementation of austerity measures and related matters for the financial year, inviting proposals from principal accounting officers for curtailing expenditures, and approving proposals for relaxing the approved measures.

The committee will also constitute a separate body for reviewing the need and utility of autonomous bodies, state-owned enterprises, corporations and authorities.

The Finance Division also issued an office memorandum, also dated July 7, noting that extraordinary measures needed to be taken for ensuring “rational utilisation of public money” in addition to curtailing expenditures.

The notification reiterated a ban on purchasing all types of vehicles except utility ones, including ambulances, buses for educational institutes and for solid waste; creation of new posts except those required for development projects; treatment abroad at government expense; and appointment of daily wagers except for development projects.

A ban was also placed on purchasing office furniture, machinery and equipment and unnecessary official visits abroad by government officials; official lunches/dinners/hi-teas except for foreign delegations; and periodicals, magazines and newspapers.

The principal accounting officers were told to reduce consumption of utilities by 10pc and of petrol entitled to government functionaries by 30pc; and curtail avoidable travel by promoting online meetings.

The federal government also decided to slash petrol usage of ministers’ vehicles by 40pc and of security vehicles of cabinet members by 50pc, and expenses of VVIP cavalcades without compromising on security, the memorandum stated.

Published in Dawn, July 9th, 2022