Increasing inflation and unemployment due to recent massive hikes in fuel, electricity and gas prices in Pakistan has again compelled the coalition government to start an austerity drive as the PTI-led federal government did after assuming power in 2018.
Hijacked by its own elite, it is on the brink of moral and financial bankruptcy. Devoid of all considerations for the wellbeing of ordinary citizens, Pakistan’s political conflict is essentially a struggle between powerful political families to capture state resources, power and pelf.
Fuel being the biggest import burden ($20 billion a year), we ought to begin by withdrawing approximately 150,000 government cars being misused by officials across Pakistan. A near-bankrupt country like Pakistan can learn from the UK where only 83 cars are maintained in a central pool for all government ministries. The governments in Punjab, Sindh and KP have announced to reduce the fuel quota to the government officials, but the situation demands more cuts to the elite class of the country, whose burden is being carried forward by the general public is mostly a salaried class and labourers.
Eliminating all air conditioners and TV sets in government offices could save electricity, wasted time and energy bills worth Rs10 billion per year. A four-day work week could bring an additional 15% saving on all government utility expenses.
The elite deadweight on our economy can be further reduced by banning the import of all vehicles. Driving large fuel-guzzling vehicles ought to be positively discouraged. Anyone driving a vehicle ought to pay a toll tax that rapidly escalates with the size of the car.
Any attempts at reducing expenses would remain incomplete unless all major organisations, including the armed forces, are tasked to adopt exceptional austerity measures, cut down ceremonial and non-operational expenses and voluntarily bring at least 5% reduction in their budgets.
Though the Shehbaz Sharif’s government is trying hard to appease the IMF for the revival of the loan program for Pakistan which was halted due to violation by the then prime minister Imran Khan as per the IMF mission, the situation of the country is not much improvement at the economic front.
The greenback is as strong against PKR as it was, the PSX is witnessing a mixed trend. The outcry of the general public is also an issue for the incumbent government, now we have to see whether the steps of the government will yield the results or the situation will remain the same.
