Federal Cabinet Meeting Underway

ISLAMABAD, Pakistan News : Federal Cabinet Meeting Underway, The federal cabinet meeting under the chairmanship of Prime Minister Yousuf Raza Gilani is underway here on Wednesday.

Prime Minister Yousaf Raza Gilani has convened a special meeting of the Cabinet today to approve the ‘Austerity Plan’, formulated by the Finance Ministry in the light of the recommendations made by a committee, and also to approve import of bullet-proof vehicles, official sources told Business Recorder here on Tuesday.

Chief Ministers of four provinces, AJK Prime Minister, and representatives of Northern Areas will also attend the meeting. The Austerity Plan recommends massive curtailment in perks and privileges of President, Prime Minister, Chief Ministers, Governors, Ministers and top bureaucracy. Five-day working week for resource saving (especially energy) and improved efficiency is also one of the key recommendations.

Finance Ministry has proposed reduction in the Defence expenditure, the number of Ministers and Advisors, recovery of written-off loans, displayable income tax token for small shops and income tax on agriculture as part of its austerity plan. The two major expenditure items, straining the economy are debt servicing and non-development expenditure.

“Systematically, and gradually, reducing Defence expenditure and ensuring productive utilisation of resources”, were cited by sources as suggestions by the Finance Ministry for the austerity plan. The Cabinet would also approve a policy regarding procurement/import of armoured/bullet-proof vehicles for the public and private sectors.

Sources said that Cabinet Division had informed the Cabinet on December 8, 2009 that because of prevailing security situation in the country and continuing wave of terrorism, important public and private office holders have become vulnerable for such attacks.

Appreciating the requirement of the security of public and private office holders against threat of terrorism, Prime Minister Gilani directed that a policy for procurement/import of armoured/bullet-proof vehicles for public and private sectors be tabled before the Cabinet.

The magnitude of foreign exchange involved in import of foreign made vehicles has necessitated consideration of indigenous options for armouring of such vehicles. The Cabinet was, therefore, requested to consider different sets of options for providing bullet-proof vehicles.

Sources said that the Cabinet, while taking note of genuine security concerns, decided to refer the matter to the committee on austerity measures with directions to further evaluate the options and submit workable recommendations along with the proposed austerity measures to be considered by the cabinet in its special meeting.

“Restructuring of public sector enterprises (PSEs), rationalisation of government size, review of current and federal legislative lists, budgetary measures, substantial curtailment of foreign visits, use of commercial flights instead of chartered flights, expenses on public offices, two weekly holidays, security and energy efficiency and conservation are the main proposals of the Austerity Plan,” the documents said.

Other recommendations are that expenditure on all development programs should be linked with result-oriented performance and the scope and modus operandi of Special Development Program (SDP) needs to be reformed so that leakages could be plugged.

Proper evaluation of donor-funded projects, particularly the projects financed through foreign borrowing, simplicity from the top downwards, and one-dish be made compulsory for all types of functions without any exception in public and/or private sectors.

Categorized | Pakistan News

Tags : business, chairmanship, chief-ministers, defence, federal-cabinet, fighter-jet, ground, meeting-underway, paf, paf fighter jet crashes, pakistan, president, underway, weekly-holidays

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