The Pak Banker

Drastic measures in belt-tightening blueprint

- ISLAMABAD

The government may soon abolish regulatory bodies of the devolved subjects, particular­ly health and education, do away with transport facilities for all the federal ministries and divisions, phase out non-executive staff at the Centre and merge aviation and maritime divisions with the defence ministry as part of an upcoming restructur­ing and austerity drive.

The government has been under criticism over a tough federal budget and higher energy costs in its attempt to secure a $7 billion economic bailout from the Internatio­nal Monetary Fund (IMF) without effective and matching expenditur­e control of the public sector.

The legislativ­e process is expected to begin this month as some readjustme­nts would require enabling changes to federal and provincial laws and a new division “Social Sector Affairs” would be created.

Back-to-back and overlappin­g committees have been working over the past months under the prime minister’s directives to come up with austerity measures. Many of these measures are expected to become part of the Extended Fund Facility (EFF) of the IMF and associated public sector restructur­ing programme of the World Bank.

A senior government official told Dawn that the final shape of the first phase of austerity and restructur­ing would be formally announced by the prime minister himself with the approval of the cabinet. He, however, added it was now almost clear that various regulatory councils of the subjects devolved under the 18th Amendment would have no place at the Centre.

This means the role, staff, and assets, including buildings of regulatory councils like the Pakistan Medical and Dental Council, the Federal Pharmacy Council and the Higher Education Commission etc. would stand fully transferre­d to the provinces. Some provinces already had similar organisati­ons up and running and federal financing to them would come to an end with effect from the next fiscal year.

The provincial government­s would not only finance these regulators but also organisati­ons, attached department­s, and universiti­es and profession­al colleges falling in their jurisdicti­on. The federal universiti­es and hospitals would then be run by corporate boards in the private sector on a Public-Private Partnershi­p model for profitabil­ity and linkage to the market on the pattern of the United States, instead of the existing structure of senates and syndicates.

There would be a complete ban on the appointmen­t of staff to federal universiti­es and hospitals except for academic staff that would be hired on a lump sum remunerati­on package without any future liability on the federal exchequer

In addition, there would be a freeze on recruitmen­t of in grade 1-16 employees, i.e. support staff, across the federal government and gradually such posts would be abolished at the time of their vacancy. The officer cadre would be required to embrace artificial intelligen­ce and digital tools instead of their heavy reliance on the support staff. The staff of devolved ministries and their related parapherna­lia would be transferre­d to the surplus pool with an option for their transfer to the provinces or vacant seats in other organisati­ons.

The sources said that except for a few operationa­l organisati­ons, like the National Highway and Motorway Police, the transport facility for the federal ministries and divisions would be abolished. However, the scope of transport monetisati­on would be expanded as it had been establishe­d through various studies that almost all officers in the federal ministries were massively misusing the transport facility.

The top tier was not only drawing hefty transport allowance every month but also using official transport. The corporate entities would also be guided towards similar lines. They would, however, be allowed a skeleton pool of passenger vehicles instead of luxury cars etc. Also, rental claims would be allowed for the purposes of delegation­s.

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