Sindh to buy 138 double cabin vehicles worth Rs2bn amid Centre's austerity drive

KARACHI: As the cash-strapped country struggles to cut government expenditures amid fiscal constraints, Sindh seeks to procure 138 double cabin vehicles worth Rs2 billion for assistant commissioners (ACs), exposing how bureaucracy continues to squander already scarce national funds.

The federal government is currently pressing ahead with its economic reforms and rapidly implementing its rightsizing policy, under the direct supervision of Prime Minister Shehbaz Sharif. While the Centre aims to get rid of redundant ministries and departments to ease the burden on the exchequer, the Sindh government appears to be on a different page from the federation.

According to sources, the Sindh Services, General Administration & Coordination Department, has already written to the Finance Department Government of Sindh, requesting the release of the amount for the procurement of these vehicles. The assistant commissioners will be provided with Toyota Hilux Revo vehicles, each costing over Rs10 million. These new vehicles are intended to facilitate the officers in carrying out their duties more effectively, the sources added.

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.

The current belt-tightening comes as Islamabad, grappling with a highly wobbly economy, awaits the International Monetary Fund (IMF) Executive Board's approval of a $7 billion, 37-month Extended Fund Facility (EFF) deal.

A copy of the letter issued by the Section Officer (Budget) for secretary of Government of Sindh, acquired by Geo News, reads: “I am directed to refer to the subject noted above and to forward herewith a copy of an approved Summary for Chief Minister, Sindh bearing PS to CS Diary No. 4861, dated: 02nd September, 2024 regarding permission to procure 138 vehicles (4x4 Double Cabin) in respect of Assistant Commissioners from existing budgetary allocation, by Board of Revenue through centralised procurement mechanism in one go.”

“Finance Department, Government of Sindh, is therefore, requested to release the entire withheld funds amounting to Rs1,991,892,000 allocated under head of account "SC21114 (114)-Board of Revenue-A09501-Purchase of Transport" by placing the same at the disposal of Senior Member, Board of Revenue, Sindh, to procure 138 vehicles (4x4 Double Cabin) in respect of Assistant Commissioners through centralised procurement mechanism in one go, during current financial year, 2024-25, as per rules/policy,” the letter added.

PM Shehbaz in July constituted a committee for the rightsizing of the federal government with particular reference to five selected ministries under specific terms of reference.

Finance Minister Muhammad Aurangzeb on Tuesday reaffirmed the government’s resolve to carry forward the reforms agenda, aiming at broadening the tax base and rightsizing the federal government to achieve macroeconomic stability what he called "basic hygiene" for sustainable growth.

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.

“All luxury vehicles should be withdrawn from the ministers, advisers and bureaucrats, who would travel abroad only if inevitable and that too in economy class,” an analyst said.