Interim era of austerity

Caretaker CM prohibits the ‘extravagant’ use of public funds

Lahore: In Pakistan, the austerity mantra always sells, and politicians frequently sell it to the public at exorbitant prices.

According to reports, interim Chief Minister Mohsin Naqvi, who took office after the dissolution of the Punjab Assembly, has announced austerity measures to relieve pressure on the government’s spending. On July 27, one day after taking the oath,  Mr Naqvi arrived at the office in his personal vehicle. He issued the order that neither he nor any of his cabinet members would follow any protocol. Mr Naqvi stated unequivocally that he would pay for his own gas and vehicle. The cabinet members confirmed his statement after following him and spotting him doing so.

More austerity measures will be implemented in the coming days. In a significant effort to enforce austerity measures, the caretaker chief minister prohibited the extravagant use of public funds. Luncheons and receptions at the Chief Minister’s House are subject to the chief minister’s restrictions. Visitors to the chief minister are also served tea and biscuits. Furthermore, the free lunch provided to Chief Minister’s House staff is no longer available. According to sources, the chief minister also directed Chief Minister Office employees to implement austerity measures, and he is said to bear both his own and his employees’ expenses. His personal funds are being used to cater to guests in this regard as well.

Despite the fact that successive governments have announced such measures in the name of efficient resource utilisation, the actual benefit to the national coffers in this regard must be reviewed.

Ahmed Bilal Mehboob, the head of the Pakistan Institute of Legislative Development and Transparency (PILDAT), applauds the caretaker government’s actions, noting that every single action counts. He questioned the appointment of ministers for sports, local government, information, and culture, claiming that a caretaker administration’s primary responsibility is to hold free and fair elections. The previous governments of Usman Buzdar and later Parvez Elahi had also outlined an austerity policy, and an austerity committee was formed, headed by the finance minister, with members including the finance secretary, the planning and development board secretary, the special finance secretary (E&CF), a representative of the administrative department (not less than grade 19), and an additional finance secretary (LGF/G).

The committee explicitly banned the purchase of new vehicles, with the exception of purpose-built or special vehicles for service delivery in health, Punjab emergency services, education, and police (APC, prison van, tow truck, forklift), local government, agriculture, livestock, parks and horticulture authorities, water and sanitation agencies, the Punjab Provincial Disaster Management Authority (PDMA), and solid waste management companies. The use of contingent workers and office air conditioners costing more than Rs 1 million was also prohibited by the committee. Another provision prohibited government officials from incurring government fees for treatment in another country. In exceptional cases, the chief minister’s approval was required. Moreover, all air travel was prohibited, with the exception of training for government officials. Workshops, seminars, and other official gatherings were also banned in private hotels or paid venues.

Given the recent precarious economic situation, extreme caution and diligence must be exercised when using public funds in order to achieve the overall goal of prudent financial management and financial discipline.

According to Abdul Rauf Shakoori, a corporate lawyer based in the United States, the overall financial impact of the reduction in expenditures earned through austerity measures will always be limited because there is little room to compromise on essential developmental and non-developmental expenditures such as salaries, health, education, the provision of basic needs, and so on. ”It has been observed that the government generally imposes a ban on unnecessary international travel, the purchase of new vehicles, office furnishing, etc.; however, these actions are also not followed in true letter and spirit through exceptions and special approvals,” he said, proposing a large-scale policy to reduce government expenditures.

”As the overall idea of austerity and saving is to be achieved, the prime focus of our representatives and civil servants should be on service delivery and performing their tasks. Austerity measures are nothing more than a sham exercise to create a smoke screen in front of the public to cover up their incompetence and inefficiencies unless the core objective of service delivery is met,” he added.

”It is preferable to fix system loopholes and work toward revenue optimization in order to achieve a self-sustaining economic system in which current and developmental needs are met organically rather than through expensive debt instruments,” the lawyer maintained. Amir Mir, the caretaker information minister, could not be reached for comment, but journalist Syed Hassan Raza Naqvi, who is close to the caretaker setup, said that the Mohsin Naqvi administration’s measures have changed the entire culture of the government.

”I have firsthand knowledge of lavish parties, meetups, and so on at government offices, but these unnecessary expenditures are now discouraged,” he said. Hasaan Khawar, a former PTI government spokesperson in Punjab, is not entirely critical of the caretaker government’s austerity measures, noting that being austere is always desirable.

”Each of us should be austere, as should every government, because Pakistan cannot afford these expenditures,” he stated. He advises the caretaker chief minister, however, to focus on his sole mandate: to hold free and fair elections.

”His (the caretaker chief minister’s) role requires him to be non-partisan and to hold free and fair elections. But we see that his political association is well known, and he gives people who are closely associated with one party a kind of space. And there was an uptick in anti-PTI activity right after he arrived at the office. Then he would be accused of failing to fulfil his sole responsibility as caretaker CM. That is what we need to discuss right now,” he noted.