Despite severe economic crunch why no visible austerity measures by Pakistan?

Honourable Prime Minister Mian Muhammad Nawaz Sharif Sahab,

Salaam.

While your government is increasing the size of the begging bowl, look what India is doing…!

A TOI eye opening news..!

Govt launches austerity drive, bans meetings in 5-star hotels
PTI | Sep 18, 2013, 08.37 PM IST

Chidambaram earlier met financial advisors of various ministries to impress upon them the need for austerity.

NEW DELHI: Government departments have been banned from holding meetings in 5-star hotels and officials barred from executive class air travel as part of a slew of austerity measures announced on Wednesday to cut non-plan expenditure by 10 per cent.

Aiming to restrict the fiscal deficit to 4.8 per cent of GDP in 2013-14, the Finance Ministry has ordered all ministries and departments not to buy new vehicles, create new jobs or fill posts lying vacant for over one year.

It has also directed that the size of delegations going abroad should be kept at the “absolute minimum.”

The government has been introducing austerity measures since 2008-09, most recently in November 2012.

“Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the government. In the context of the current fiscal situation, there is a need to continue to rationalise expenditure and optimise available resources,” the finance ministry said.

Finance minister P Chidambaram earlier said he had drawn a red line and would not allow the fiscal deficit to breach the target of 4.8 per cent of GDP in 2013-14.

The various austerity measures helped the government to contain the fiscal deficit at 4.9 per cent of GDP in the previous financial year, against the budgeted target of 5.1 per cent.

The circular came a day after Chidambaram met financial advisors of various ministries to impress upon them the need for austerity. ———————————————————–

Mr. Prime Minister, one thing must be made clear to all your advisors that only foreign loans will not and never cure the ills of the Pakistan’s economy, for which we will also have to reduce our expenditures in a big way and not just in a cosmetic manner.

Wishing you all the best in your untiring efforts to put Pakistan back on the rails of recovery.

Syed Nayyar Uddin Ahmad

Lahore.

Sent from my iPad3 4G LTE

Tags: austerity, crunch, economy, India, Pakistan, toi