In a significant austerity move, the federal government has enforced a complete ban on state funded vehicles, new machinery, and medical treatments abroad, according to a Finance Division notification. This decision is part of broader efforts to control spending as the country grapples with economic challenges.
The move has sparked criticism as the government seeks a $7 billion economic bailout from the International Monetary Fund (IMF) after introducing a tough federal budget and increasing energy costs. Critics argue that, despite these measures, effective expenditure control in the public sector, such as banning state-funded vehicles, is crucial for long-term recovery.
Last month, the government initiated further austerity measures, including the elimination of transport facilities for all federal ministries, merging the aviation and maritime divisions with the defense ministry, and abolishing regulatory bodies for health and education. A notification issued on 4 September 2024 stated that to ease the financial burden on the national treasury, expenditures like the purchase of all types of state-funded vehicles, excluding operational ones such as ambulances and fire trucks, are prohibited.
Additionally, the federal government has restricted the procurement of machinery, except for essential sectors like hospitals, schools, agriculture, and mining. New government posts will also be frozen, and those vacant for more than three years will be abolished.
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Provincial governments, such as Khyber Pakhtunkhwa, have already implemented similar austerity measures, banning new posts, vehicle purchases, and participation in foreign programs. In contrast, the Sindh government recently faced criticism for approving the purchase of 138 luxury double-cabin vehicles for its assistant commissioners at a cost of Rs2 billion, defending the move as necessary for provincial administration.
