In a move to tighten the budget, the federal government has imposed a “complete ban” on certain expenditures, including the purchase of new vehicles, machinery, and state-funded medical treatment abroad, according to a Finance Division notification issued this week.
This action follows criticism directed at the government for enacting a stringent federal budget and increasing energy costs in an effort to secure a $7 billion economic bailout from the International Monetary Fund (IMF), without effectively controlling public sector expenditures.
Last month, the government decided to abolish regulatory bodies for devolved subjects such as health and education, eliminate transport facilities for all federal ministries and divisions, phase out non-executive staff at the Centre, and merge the aviation and maritime divisions with the defence ministry as part of its restructuring and austerity measures.
The September 4 notification, reviewed by Dawn.com today, states that certain expenditures will be entirely prohibited under the new budget to alleviate pressure on the overstretched national treasury.
The notification specifies that there will be a ban on the “purchase of all types of vehicles, with the exception of operational vehicles, such as ambulances & other medically equipped vehicles, fire fighting vehicles, buses & vans for educational institutions, solid waste vehicles and motorbikes.”
It also prohibits the procurement of machinery and equipment, except for those necessary for hospitals, laboratories, schools, and the agriculture and mining sectors.
Additionally, the notification announces a complete ban on the creation of new governmental posts, including temporary ones, and mandates the abolition of posts vacant for three years.
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Furthermore, the notification states that government-funded medical treatments abroad will be banned, as well as “non-obligatory visits abroad where GoP funding is involved.”
