ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday unveiled austerity measures amid economic crunch and said the government was trying to save the public from scorching inflation.
Addressing a press conference while being flanked by leaders of allied parties on Wednesday, he said the ministers, state ministers and special advisers to the premier had decided to forego their salaries and perks. He said all ministers had also decided to pay their own utility bills.
Pakistan is facing an economic crunch and has been negotiating with the International Monetary Fund (IMF) for the next tranche of $1.1 billion. The international lender has set very tough conditions and demanded that Pakistan boosts its tax base, end exemptions for the export sector and raise energy prices.
The prime minister said, “All luxury cars being used by cabinet members are being called back and will be auctioned.” “Where needed, only one car will be provided for security.”
Mr Sharif said the deal with the International Monetary Fund (IMF) would be locked soon, adding that the “matters would be settled in a few days” but it would cause further inflation. He said Pakistan had fulfilled almost all of the IMF’s conditions.
The premier also announced that only one car would be provided for security purposes where necessary and federal ministers would also travel in economy class when going abroad on state visits. He added that the government had passed a mini-budget under which new taxes would be levied on big corporations, adding that these measures would protect the common man from inflation to some extent.