The federal government has introduced a series of austerity measures aimed at cutting expenditures across various departments. These include eliminating vacant positions, halting the purchase of new vehicles and machinery, and imposing a ban on foreign travel for officials.
Last month, the government announced plans to dissolve regulatory bodies for devolved sectors like health and education, eliminate transport facilities for all federal ministries and divisions, phase out non-executive staff at the central level, and merge the aviation and maritime divisions with the defense ministry as part of its broader restructuring and cost-saving initiatives.
According to a finance ministry notification issued on Friday, these austerity measures are being implemented to curb government spending. As part of these steps, the purchase of new vehicles and equipment for government departments is prohibited, except for essential operational vehicles like ambulances, fire trucks, buses for schools, and solid waste vehicles.
The notification also restricts the purchase of machinery, allowing exemptions only for equipment needed in hospitals, laboratories, agriculture, mining, and schools. Additionally, a ban on creating new posts or temporary positions has been enforced, with all positions left vacant for the past three years to be abolished. Public Sector Development Project (PSDP)-funded projects, however, are exempt from these restrictions.
There is also a complete ban on government-funded medical treatment abroad and unnecessary foreign travel. Recruitment of staff for federal universities and hospitals is restricted, with only academic staff being hired on fixed-term contracts without long-term financial obligations for the government. Hiring for grade 1-16 support staff across federal departments is frozen, and these roles will gradually be phased out when they become vacant.
Officers are encouraged to adopt artificial intelligence and digital tools to reduce dependency on support staff. Provincial governments, such as Khyber Pakhtunkhwa, have already implemented similar measures, including bans on new posts, vehicle purchases, and participation in foreign workshops.
In contrast, the Sindh government recently approved the purchase of 138 luxury double-cabin vehicles for assistant commissioners, allocating Rs2 billion for the procurement. It justified the decision by stating that assistant commissioners are essential to provincial administration.
