Pakistan's federal cabinet gives up salaries, perks as PM Sharif announces fresh austerity measures

Pakistan Prime Minister Shehbaz Sharif chairs a meeting of the Federal Cabinet in Islamabad on February 22, 2023. (PID)
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Updated 22 February 2023
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Pakistan's federal cabinet gives up salaries, perks as PM Sharif announces fresh austerity measures

  • PM Sharif says Pakistan has fulfilled all IMF conditions for loan revival program
  • Cabinet members to pay water, gas and electricity bills themselves, says PM

ISLAMABAD: Members of Pakistan's federal cabinet have decided to forego their salaries, perks, and other privileges, Prime Minister Shehbaz Sharif announced on Wednesday, as Islamabad continues to grapple with serious economic crises with prospects of default looming large. 

On January 13, the finance ministry announced that Sharif had set up a National Austerity Committee to recommend how public expenditure can be reduced and ensure "fiscal discipline" to reduce unnecessary expenditures. 

The move comes at a time as Islamabad eyes a staff-level agreement with the International Monetary Fund (IMF) to shore up its foreign exchange reserves, which have fallen to alarmingly low levels. As Pakistan's foreign reserves dipped over the past year, its currency has also depreciated to historic lows against the U.S. dollar, aggravating the country's economic crisis. 

Flanked by Finance Minister Ishaq Dar and other members of the cabinet, Sharif said the cabinet had decided in its meeting on Wednesday to introduce new austerity measures given Pakistan's current economic situation. 

"All ministers, advisers, ministers of state, and special assistants have decided voluntarily to forego salaries and perks," Sharif told reporters. "All ministers will also pay for water, gas, and electricity bills from their own pockets," he added. 

Sharif said the government is taking back all luxury cars that have been provided to cabinet members, adding that these will be auctioned off. He said if required, each minister would be provided only one car for his/her use. 

“Until June 2024, which means till next year, there will be a complete ban on buying luxury items," the prime minister said. "Until June 2024, there will be a complete ban on buying all types of new cars as well.”

"Federal ministers will travel in and out of the country in the economy class," Sharif announced. "Their support staff will not be allowed to travel with them on foreign trips."

He said cabinet members would also not be allowed to stay at five-star hotels whenever they embark on foreign tours, adding that the current expenditures of all government ministries and divisions would be reduced by 15%. 

He said government officers would only be allowed to travel on government expenditure on "obligatory visits."

In response to a question, the prime minister said the cabinet had discussed reducing the size of its 83-member cabinet to send a positive message to the public. 

"We have decided to postpone this [decision] for a few days. But since you have asked me about it—and I could have ignored the question—but you will hear good news about it soon," he added. 

Sharif spoke about Pakistan's negotiations with the IMF, saying that his government would steer Pakistan out of its current economic crisis. 

"Without going into details, I'll say that as far as the staff-level agreement is concerned and their [IMF] board meeting, we have fulfilled almost all of their conditions," the prime minister said.


Pakistan combing for perpetrators after deadly Balochistan attacks

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Pakistan combing for perpetrators after deadly Balochistan attacks

  • Pakistan has been battling a Baloch separatist insurgency for decades, with frequent armed attacks on security forces, foreign nationals and non-locals
  • Militants stormed banks, jails, police stations and military installations, killing 31 civilians and 17 security personnel, the Balochistan chief minister says

QUETTA: Pakistan forces were hunting on Sunday for the separatists behind a string of coordinated attacks in restive Balochistan province, with the government vowing to retaliate after more than 190 people were killed in two days.

Around a dozen sites remained sealed off, with troops combing the area a day after militants stormed banks, jails, police stations and military installations, killing at least 31 civilians and 17 security personnel, according to the chief minister of Balochistan province.

At least 145 attackers were also killed, he added, while an official told AFP that a deputy district commissioner had been abducted.

That figure includes more than 40 militants that security forces said were killed on Friday.

Mobile internet service across the province has been jammed for more than 24 hours, while road traffic is disrupted and train services suspended.

After being rocked by explosions, typically bustling Quetta lay quiet on Sunday, with major roads and businesses deserted, and people staying indoors out of fear.

Shattered metal fragments and mangled vehicles litter some roads.

"Anyone who leaves home has no certainty of returning safe and sound. There is constant fear over whether they will come back unharmed," Hamdullah, a 39-year-old shopkeeper who goes by one name, told AFP in Quetta.

The chief minister, Sarfraz Bugti, told a press conference in Quetta that all the districts under attack were cleared on Sunday.

"We are chasing them, we will not let them go so easily," he said.

"Our blood is not that cheap. We will chase them until their hideouts."

The Baloch Liberation Army (BLA), the province's most active militant separatist group, claimed responsibility for the attacks in a statement sent to AFP.

The group, which the United States has designated a terrorist organisation, said it had targeted military installations as well as police and civil administration officials in gun attacks and suicide bombings.

Interior Minister Mohsin Naqvi, who flew to Quetta late Saturday to join funerals, claimed without offering any evidence that the attackers were supported by India.

"We will not spare a single terrorist involved in these incidents," he said.

In a press conference on Sunday, Pakistan Defence Minister Khawaja Asif likewise claimed the attackers enjoyed links to India and pledged to "completely eliminate these terrorists".

India denied any involvement.

"We categorically reject the baseless allegations made by Pakistan, which are nothing but its usual tactics to deflect attention from its own internal failings," said foreign ministry spokesman Randhir Jaiswal on Sunday.

'BROAD DAYLIGHT'

Pakistan has been battling a Baloch separatist insurgency for decades, with frequent armed attacks on security forces, foreign nationals and non-local Pakistanis in the mineral-rich province bordering Afghanistan and Iran.

Saturday's attacks came a day after the military said it killed 41 insurgents in two separate operations in the province.

The insurgents released a video showing group leader Bashir Zaib leading armed units on motorcycles during the attack.

Another clip claimed to show the abducted senior official from Nushki district.

In another district, militants freed at least 30 inmates from a district jail, while seizing firearms and ammunition. They also ransacked a police station and took ammunition with them.

"It was one of the most audacious attacks in the region in recent years, as unlike other attacks, it took place in broad daylight," Abdul Basit at the S. Rajaratnam School of International Studies in Singapore told AFP.

"It is alarming that militants, with coordinated manpower and strategic acumen, have now reached the provincial capital," he added.

Several of the BLA's videos featured women insurgents, while Defence Minister Asif said at least one of the suicide bombers was a young woman.

"They continue to showcase women strategically in high-visibility attacks," Basit said.

Pakistan's poorest province and largest by landmass, Balochistan lags behind the rest of the country in almost every index, including education, employment and economic development.

Baloch separatists accuse Pakistan's government of exploiting the province's natural gas and abundant mineral resources, without benefiting the local population. The government denies this.

The BLA has intensified attacks on Pakistanis from other provinces working in the region in recent years, as well as foreign energy firms.

Last year, the separatists attacked a train with 450 passengers on board, sparking a deadly two-day siege.