The word “austerity” refers to moderate economic conditions created by the government to reduce public expenditure. The first austerity measures were introduced in the UK in late 2008.
Pakistan is a developing country where the dire need for austerity cannot be overemphasized. Austerity measures act like contractionary fiscal policy. It slows down the economic growth which makes it even more difficult to raise revenue which is needed to pay off sovereign debt.
The austerity measures circular issued following the Federal Budget for the financial year 2020-21 is pretty short. It bans the purchase of new cars, motorcycles and other vehicles, it also uses paper on both sides to maximize the usage of official stationery.
Neither there are restrictions, nor actions taken against antagonists to austerity measures who are leading corridors of power at national and provincial levels.
While talking about austerity measures none other but PTI chairman/Prime Minister Imran Khan following a free, fair and transparent general elections in July 2018 vowed to set an example of austerity in the utilization of public funds by the Prime Minister’s house and Prime Minister’s office.
Pakistan is already under a heavy dose of inflation where low economic growth and internal state affair have been posing threat to its prosperity. Adoption of austerity measures may solely cause economical catastrophe that surely will invest in poverty.
SAJID ALI NAICH
KHAIRPUR
