Austerity measures reintroduced

ISLAMABAD: Interim Prime Minister Anwaarul Haq Kakar has approved new fiscal austerity measures, including a ban on creating new positions and major purchases. However, the impact of these measures may be limited, as the government spends more than its total net income just on interest payments. A complete ban on creating new posts under the Public Sector Development Programme (PSDP) and the current budget for the fiscal year 2023-24 has been approved by the government. The caretaker PM approved the austerity measures almost four months before the end of the current fiscal year 2023-24, which is ending in June. Usually, the policy is approved at the start of the fiscal year, but the interim government approved it a week before the end of its term in office. Additionally, the prime minister has banned the purchase of machinery and equipment from the current budget, except for medical purposes, according to the notification.