ISLAMABAD: The government has imposed a ban on six significant expenditure items as part of its austerity measures to reduce non-development spending, including discretionary foreign trips funded by the national treasury.
According to a media report, an official circular titled “Austerity Measures for Controlling Expenditures of the Federal Government” has been issued to the President House, PM House, Auditor General of Pakistan, and relevant ministries, stating that in compliance with the cabinet’s decision for case No. 232/28/2024 dated 27.8.2024, the following austerity measures are notified until further notice:
- A complete ban shall be imposed on the following expenditures concerning the current budget.
a) The purchase of all types of vehicles is banned, except for operational vehicles such as ambulances and other medically equipped vehicles, firefighting vehicles, buses and vans for educational institutions, solid waste vehicles, and motorbikes.
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b) The procurement of machinery and equipment is prohibited, except for those needed for hospitals, laboratories, agriculture, mining, and schools;
c) The creation of new posts, including contingent paid or temporary positions, is prohibited;
d) The continuation of contingent paid or temporary posts beyond one year is prohibited;
e) Medical treatment abroad at government expense; and All non-essential foreign visits involving Government of Pakistan (GoP) funding.
- The austerity measures notified by the Cabinet Division through O.M. Nos. 7-1/2023-Min-I and 9-148/2002-Min-II dated 28.2.2023 will remain in effect unless altered or revoked by the Federal Cabinet.
- All posts that have remained vacant for the past three years shall be abolished.
The purchase of durables and the creation of posts under PSDP-funded projects will be exempt from this ban.
