Punjab plans to 'spend over Rs612m on luxury vehicles' amid Centre's austerity drive

LAHORE: As the cash-strapped country struggles to reduce administrative expenditures under an austerity drive, the Punjab government plans to spend over Rs612 million on 76 luxury vehicles for parliamentary secretaries and escorts for provincial ministers’ protocol duties, it emerged on Monday.

Sources told Geo News that the additional chief secretary wrote a letter to the finance department for release of over Rs612 million funds for the procurement of 76 luxury vehicles.

They added that the government will procure 29 luxury vehicles worth Rs220 million for parliamentary secretaries while 15 vehicles worth Rs90 million will be brought for Services and General Administration Department (S&GAD).

Furthermore, the sources claimed that the government has decided to buy 30 vehicles worth Rs200.90m for provincial ministers’ protocol duties. Two additional vehicles worth Rs30.61m will be procured to strengthen S&GAD transport pool.

The development came as the federal government is actively pursuing economic reforms and rapidly implementing its rightsizing policy, under the direct supervision of Prime Minister Shehbaz Sharif.

Last year, PM Shehbaz had asked his ministers and advisers to fly economy class and forgo luxury cars and their salaries as part of an austerity drive that will save the government 200 billion rupees a year.

The budget for the fiscal year 2024-25 has put immense pressure on the already struggling public and salaried class, as the government failed to provide any relief while avoiding austerity measures for its functionaries.

A day earlier, Finance Minister Muhammad Aurangzeb announced that the government would eliminate 150,000 vacant positions, dissolve one ministry, and merge two others in an effort to reduce administrative costs.

After the federal cabinet’s approval, he said the rightsizing committee had decided to scrap 60% of the vacant seats, which would help reduce the expenditures.

In a similar move this month, the Sindh government planned to spend Rs2 billion on 138 luxury 4x4 vehicles for assistant commissioners (ACs) across the province.

The assistant commissioners would be provided with Toyota Hilux Revo vehicles, each costing over Rs10 million. These new vehicles were intended to facilitate the officers in carrying out their duties more effectively, as per the sources.

Economists have time and again proposed a complete ban on the purchase of luxury items or vehicles for all government-run entities and advised against creating any administrative unit like a new district or town as long as the country was facing economic challenges.