Austerity measures

PRIME Minister Shehbaz Sharif on Monday announced a four-day work week and work-from-home policy as part of wide-ranging austerity measures, which he said were necessary to deal with the prevailing global fuel crisis triggered by the ongoing invasion of Iran by the United States and Israel.

The plan unveiled by him during his address to the nation envisages fifty percent cut in fuel allowance for official vehicles besides grounding of sixty percent of official transport for the next two month; reduction in government expenses by twenty percent; salary cuts for members of the cabinet, parliamentarians and bureaucrats receiving salary beyond three hundred thousand rupees to fund relief for ordinary people; work from home for fifty percent employees; online classes for higher education and two week’s holidays for schools; and a ban on foreign visits by ministers, advisors and officials. In a related development, Pakistan Navy has launched Operation Muhafizul Bahr to ensure the uninterrupted flow of national energy supplies and the security of sea lines of communication.

The belt-tightening had become necessary to prepare for the evolving situation, which is assuming serious dimensions with the passage of time with consequences for almost the entire world and more so for regional states. The closure of Strait of Hormuz by Iran as well as general threats for shipping has caused supply constraints and a dramatic escalation in prices of oil and related services. The situation would become more complicated for countries like Pakistan as the warring parties have started targeting oil facilities and infrastructure despite a commitment made by Washington not to do so. The measures announced by the Prime Minister aimed at energy conservation might, therefore, help save fuel and cut government expenses in the face of a volatile scenario. However, much depends on actual implementation of these measures both by the federal and provincial governments. It is encouraging that the provinces too have announced to follow the footsteps of the federation in launching similar measures to save energy and cut expenditure. However, it is unfortunate that as before, the government has not touched the problem repeatedly highlighted by the media that senior bureaucrats are widely misusing official transport for them and their families despite opting for a sumptuous car allowance.

Similarly, VIP culture has firmly taken its root as there is no worthwhile move to discourage movement of dozens of vehicles in the name of security requirements. It is also shocking to point out that the government itself is acknowledging time and again that petroleum reserves were stable and measures are in place to ensure smooth and uninterrupted availability but the authorities rushed to burden the people of Pakistan with an uncalled for Rs.55 a litre hike in the prices of petrol and diesel and a more coercive increase in the price of kerosene oil. People have started feeling the shock of this monumental increase in the price of oil as reflected in the immediate hike in railway and transport fares as well as prices of almost all commodities and services. The Prime Minister talked about providing relief to the people but his address contained nothing to address the woes of the people vis-à-vis a new wave of inflation caused by the actions of the government. As for Operation Muhafizul Bahr, it is satisfying that the Pakistan Navy is fully cognizant of the prevailing maritime situation and is actively monitoring and controlling the movement of merchant vessels to ensure their safe and secure transit. This is important as nearly 90% of the country’s trade is conducted via sea and its security has become a priority in the economic interest of the nation. The Pakistan Navy is capable to do so but we need to invest more on the force to ensure its modernization and expansion as per evolving geo-strategic realities.

 

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