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Amidst Economic Stress, Government Opts for Austerity

Sindh, Khyber-Pakhtunkhwa slash fuel quota, as Punjab ministers announce they will pay for their own fuel in the coming months

by Staff Report

Photo courtesy PID

The Sindh and Khyber-Pakhtunkhwa provincial governments on Friday announced they were slashing the fuel quota for cabinet members, lawmakers and government officials, as the federal government said it was considering similar measures and ministers in Punjab said they will not avail any fuel from state resources.

The coalition government led by Prime Minister Shehbaz Sharif has increased petroleum prices by a hefty Rs. 60 in the past week. The unprecedented hike has already raised concerns of rampant inflation, with public transporters already raising their tariffs and prices of several essential commodities climbing well past affordability for the impoverished.

Amidst public outcry over the rapidly deteriorating economic situation, the government has decided to adopt austerity measures in a bid to show the people that it is endeavoring to reduce its own expenditures while asking them to withstand the fallout of its “difficult decisions.”

On Friday morning, the Sindh and KP governments also slashed their petroleum expenditure by 40 and 35 percent, respectively. In a statement, Sindh Chief Minister Murad Ali Shah approved the 40 percent cut in fuel quota for all provincial government officials and ministers, including himself, adding that with prices of petrol products soaring, he did not wish to further burden the exchequer. Officials of the Sindh government subsequently said that the cut in fuel consumption would help it ensure the province did not exceed its approved budget.

Karachi Administrator Murtaza Wahab, similarly, issued an order for the Karachi Metropolitan Corporation to reduce fuel quota to municipality officers by 40 percent.

Separately, the KP government announced it was cutting fuel expenditure by 35 percent in all provincial departments and autonomous and semi-autonomous bodies. It said the initiative would help it sustain financial viability following the recent hike in petroleum prices. It would apply, it added, to ministers, advisers, special assistants to the chief minister, officers, consultants, contract employees of the provincial government, and autonomous and semi-autonomous bodies under KP’s control.

In a statement, the provincial government claimed the decision would save the provincial exchequer Rs. 125 million per month.

On Saturday morning, Punjab government spokesman Attaullah Tarar announced that all provincial ministers had decided against availing any fuel from the government amidst the price hike. He said that all ministers would pay their own way, including during official tours, to help reduce the expenditures of the provincial government.

Center measures

On Friday, addressing a ceremony in Gwadar, Prime Minister Shehbaz Sharif urged the elite to make sacrifices to help the country overcome these “challenging” times. “I have called a meeting tomorrow. The billionaire elite should come forward and sacrifice for the poor masses and provide their resources through austerity … This will start from me, ministers, advisers, federal and provincial secretaries, and government officers,” he said. “If we work together day and night, adopt simplicity, give sacrifices, then a time will surely come where we overcome these challenges and take this country towards development and prosperity. That is my belief,” he said.

Sharif reiterated his accusations of the previous PTI-led government “laying a trap” for the coalition government by announcing subsidies on fuel products when it became clear Imran Khan would be ousted through a vote of no-confidence. “Until last week, we tried our best to avoid imposing this additional burden on the people,” he said, adding this was unsustainable, as the country was being forced to take loans to fund the subsidy.

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