Austerity Committee Suggests 10 pc Cut in Salaries of Govt Employees

The recommendations of the austerity committee are to reduce the salaries of government employees by 10%, the expenditure of ministries by 15%, and reduce the number of Ministers from 78 to only 30.

The national austerity committee ( NAC) is considering various proposals, including a 10 percent cut in the salaries of civil servants, a 15 percent cut in expenditure, and a reduction in the number of federal ministers and advisers to ministers of state from 78 to 30.

While the rest of the Ministers will work on compensation, they are going to finalize their recommendations on Wednesday and have sent their report to Prime Minister Shehbaz Sharif to decide on its implementation.

According to a news channel, speaking to top Government sources, confirmed that the NAC has finalized a recommendation that the Prime Minister reduce the number of advisors to the Minister of State and the Special Assistant to the Prime Minister only.

The Government is finalizing austerity recommendations while the country is under an IMF program that primarily calls for fiscal stabilization. But the Government is reluctant to implement the full program, it has also created a deadlock for a period of two and a half months.

The NAC has also recommended banning public sector enterprises from borrowing through official references to prevent the use of presumption on provincial-level projects and several others.

The austerity committee formed by Chief Minister Shehbaz Sharif has continued to work in the Finance Division for the second consecutive day.

It is very strange that the Government is finalizing the recommendations in the name of austerity while the Government has increased the achievement of sustainable development goals. The government has added three billion rupees to the Sustainable Development Goals program and made it the biggest one, which is being used by Parliamentarians.

It is yet to be seen how the NAC will deal with the losses of large public sector enterprises as PIA’s losses for the year have reached Rs 67 billion wile Pakistan Steel mill , Pasco power distribution companies and others incurring massive losses.In the last financial year, the power sector alone suffered a loss of Rs.1600 billion.

The committee had considered the proposal to reduce the defense expenditure, but Secretary of defence replied that it could not be possible in view of the inflation and the decline in the Sharif population.

The committee has also considered banning the purchase of vehicles locally and abroad, freezing all abroad benfits to the Ministers and reducing the number of non-essential posts in various ministries and divisions.

A finance ministry official commented that the NAC was making big recommendations but it would be difficult for the current Government to implement any such recommendations.

It will remain just a debating club and the Government will only act to make a good impression rather than move towards taking any major decisions during this tenure of the coilation Government as the political temperature rises by the day.

FAQ’s

• Is it true that Government will reduce 10 percent salaries of Govt employees?

Yet it is only recommended by national austerity committee , final decision will be done after PM approval.

• How many cuts will be in Employees’ and Ministers’ salaries

According to the NAC 10 % reduction in employees and 15 % reduction in Ministers salaries is recommended.

• Why Govt is planning to cut 10 pc in salaries of the Government employees

In the current financial crisis in the Country , Govt is planning to reduce the expenditure and to overcome the current economics situation Govt is planning to reduce the salaries and other expenditures.

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