The Finance Division of Pakistan issued the latest notification on 7th July 2022 in connection with austerity measures for financial year 2022-23. In pursuance of the decision taken by the Federal Cabinet, in case No. 147/15/2022, in its meeting held on 07-06-2022, the undersigned is directed to convey that keeping in view the extraordinary financial constraints being faced by the country at present and to conserve resources, extraordinary measures are required to be taken for ensuring rational utilization of public money besides curtailing expenditure to reduce fiscal deficit.
Austerity Measures in Pakistan 2022-23
Accordingly, the Federal Government is pleased to enforce following austerity measures for financial year 2022-23:
There shall be complete ban on;
- purchase of all types of vehicles from current and development budget except utility vehicles such as ambulances, busses for educational institutions, solid waste vehicles, etc.;
- creation of new posts except those required for development projects;
- treatment abroad at government expenses
- appointment of contingent paid / daily wagers staff except for development projects;
- purchase of office furniture except for development projects;
- purchase of machinery & equipment including air conditioners, microwave, fridge, photocopier, etc.;
- official visits abroad by Govt. functionaries where GoP funding is involved except obligatory visits
- official lunches / dinners / hi-tea except for foreign delegations;
- periodical, magazines, news papers, etc.
Principal Accounting Officers shall ensure that;
- consumption of utilities be reduced by 10%;
- existing entitlement for POL for government functionaries be reduced by 30%;
- avoidable travel be curtailed by promoting use of zoom / video links:
- vacant / redundant/non-productive posts be abolished
In addition to above, Federal Government has further decided that:
- POL usage of Ministers’ vehicles would be slashed by 40% and security vehicles of Cabinet members would be reduced by 50%;
- WIP cavalcades’ expense would be reduced without compromising security
All Ministries / Divisions are requested to disseminate the above instructions to all their concerned departments / organizations / autonomous bodies / corporations / authorities, etc. for strict compliance. Provincial Governments may also adopt these / such measures.
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