Islamabad Chamber of Commerce & Industry (ICCI) welcomed the austerity measures approved by the Federal Cabinet to curb government expenses, but called for taking more steps to reduce the unnecessary fat accumulated by the federal government.

Zahid Maqbool, President, ICCI said a developing country like Pakistan cannot afford lavish expenditures on non-productive activities. He stressed upon the government to re-set its priorities and allocate more budgets to developmental projects, which will help in removing the current economic stagnation.

Appreciating the move to cut down ministries from 42 to 30 and divisions from 52 to 37, he said that all ministries, which were bifurcated to create more posts for appeasing the partners, should be merged to discourage the wasteful expenditure.

He also welcomed other austerity measures like 40 percent reduction in foreign visits by the President and Prime Minister, 25 percent cut in Presidency’s and the Prime Minister’s House’s expenses and capping them for three years as well as 30 percent reduction in the expenditures on foreign tours by ministers and another 30 percent on entertainment. He said these steps will go a long way in encouraging a culture of simplicity and a habit of living within our own means.

He said removing VIP lounges and wards in government hospitals will promote harmony and integration in the society. Similarly restricting the entourage of the president and the prime minister to seven vehicles and that of governors and chief ministers to six will help in saving unnecessary expenditures.

Zahid Maqbool said video-conferencing should also be promoted in all public sector organizations to curtail the rising trend of official tours. He said that government should constitute a special committee to formulate short, medium and long-term strategies to ensure effective implementation of these austerity measures so that country could reduce its dependence on foreign borrowing, which has accumulated to undesirable levels.