In order to meet the IMF’s demands to cut the fiscal deficit, the government has set up a 15-member committee on austerity measures for better use of public finance. According to a notification issued by the ministry of finance, the committee has been constituted “keeping in view the financial challenges being faced by the country, to conserve resources and to take austerity measures for ensuring rational utilisation of public money besides curtailing expenditure to reduce the fiscal deficit”.

Headed by former bureaucrat Nasir Mahmood Khosa, the committee comprises Minister of State for Finance Dr Aisha Ghaus Pasha, SAPM on government effectiveness and finance, PM’s adviser on the establishment, secretaries of the cabinet, finance, power and cabinet division besides chief secretaries of four provinces, chairman Capital Development Authority, Dr Kaiser Bengali, Dr Furrukh Saleem, Dr Zubair Khan and Naveed Iftikhar.

The task before the committee is to propose measures to reduce public expenditure and ensure fiscal discipline, to economise on government operations and review and rationalise the size of the government to achieve optimal organisational structures, including a review of SOEs and corporations having redundant or overlapping functions. The committee will also invite proposals from ministries and divisions about austerity measures, including curtailment of needless expenditure and any other matter that may help in promoting austerity in government operations.

The federal government’s austerity drive cannot succeed without taking into confidence the relevant stakeholders. The restaurants and shops have been ordered to close early to reduce their use of electricity, and thus to reduce fuel imports. As customers and diners will not be driving there, more fuel should be saved. Historically, such measures have not yielded the sort of savings the federal government expects. This decision of the government is facing resistance both from restaurateurs and shopkeepers.

Another austerity measure is conversion to solar power but there are hurdles in the way, including a high initial installation cost. If the buyback mechanism had been made simpler, there would have been a greater market-driven campaign towards the sort of private sector conversion to solar energy. Similarly, the electric vehicles policy has fallen victim to bureaucratic apathy and stone-walling.

Experts have rightly suggested that as fuel is the biggest import burden ($20 billion a year), Pakistan should consider withdrawing approximately 150,000 official cars in use across Pakistan. In western countries, a small pool of cars is maintained for all ministries and departments. Free allowances of hundreds of litres of petrol for politicians, judges and bureaucrats should also be withdrawn. This would save billions of rupees every month. It is also time open-ended perks such as air conditioners, LED screens and generous entertainment allowances should be dropped. Switching to a four-day work week can also drastically cut government expenses.

A scandalous piece of official expenditure is buying luxurious fuel-guzzling vehicles which cost crores of rupees a piece for the use of high officials, ministers, judges and generals. Going a step further, the import of expensive vehicles and luxury goods such as cosmetics and mineral water and edibles should be totally outlawed.

According to media reports, the armed forces have set a good example by not demanding any increase in their annual budget allocation for the current financial year. As the country is facing a difficult situation, the forces have assured that they will remain operationally efficient within the given resources. The armed forces have taken some important decisions to decrease the expenditure in different areas to support the economic stability of the country. The forces have minimised their utility bills, including electricity, gas and water.

The forces have also adopted austerity measures to save petrol and diesel and announced observing every Friday as dry day and only emergency-related work would be carried out and all other government-related transport would be halted. The forces have also decided not to conduct big exercises and training in far-off areas and would conduct small-scale training in cantonment areas. The latest technology would be used to avoid unnecessary travel and all conferences and other matters should be conducted online to reduce the present level of expenditure.

Another important step taken by the armed forces is to purchase military-related equipment in local currency to save foreign exchange. The armed forces  have saved Rs6 billion from the allotted budget during the coronavirus pandemic and have given the money back to the government. The forces also saved Rs 3 billion sanctioned last year for purchasing military equipment and deposited it with the national exchequer.

The present economic situation demands sacrifices from all concerned. We need to promote a culture of austerity and simplicity in our society. Needless to say, there is too much ostentation and wastage in our country. Lavish expenditures on weddings should be discouraged. For this, examples will have to be set by people in high places, especially public figures and political leaders.