Prime Minister Shehbaz Sharif on Tuesday stressed upon all ministries and institutions to undertake cost-cutting measures in the national interest, stressing the country cannot afford to pay for elite luxuries with the taxes imposed on the public.
Addressing a meeting of the federal cabinet, he maintained the incumbent government was taking steps on a priority basis to further improve governance and bring about institutional reforms in the country. “We are introducing digitization and smart management of institutions to modernize the country’s system and harmonize it in accordance with international requirements,” he added.
Referring to a recent meeting of the Economic Coordination Committee, he appreciated decisions taken by the finance minister, national food security minister, energy minister and other relevant officials for ensuring the uninterrupted supply of urea fertilizer for the upcoming Rabi crop. He said $130 million were saved in the national exchequer by halting the import of urea and ensuring uninterrupted gas supply to urea fertilizer units.
During the cabinet meeting, on the recommendations of the Ministry of Housing and Works, proposals were submitted regarding the dissolution of Pakistan Public Works Department; transfer of its staff; and shifting of ongoing projects to other ministries and institutions. The cabinet approved the recommendation.
The cabinet was also informed of recommendations from a committee set up for the rightsizing of the federal government. It was told that improving the federal government’s performance required proper use of manpower, removal of unnecessary impediments to policymaking and implementation of decisions, and further strengthening of the most important departments and bodies. The first phase of work on the committee’s recommendations regarding six ministries was already initiated, it was told.
Additionally, the meeting was informed 82 government bodies related to the six ministries were being merged and dissolved into 40 such institutions in line with modern requirements to ensure delivery to the public. Approving the recommendations of the committee, the cabinet established a committee to ensure the protection of the interests of the employees likely to be impacted by the merger and dissolution of these entities.
The meeting was also given a detailed briefing on progress of the ongoing austerity drive and implementation of measures under the prime minister’s directives to reduce government expenditure. The federal cabinet approved the continuation of the austerity drive, including the voluntary non-withdrawal of salaries by cabinet members; ban on purchase of government vehicles other than essential vehicles such as ambulances; ban on purchase of new equipment and machinery; no creation of new government posts; ban on non-essential foreign travel at government expense; and ban on treatment abroad. The prime minister urged the ministers to ensure all their ministries and institutions were implementing the austerity measures, and lauded their efforts in ensuring implementation thus far.