Amid the federal government’s push for economic reforms and efforts to rightsize its operations, the Sindh government has announced plans to spend Rs2 billion on 138 luxury 4×4 vehicles for assistant commissioners (ACs) across the province. This move has sparked criticism, highlighting the disconnect between the provincial government’s spending priorities and the broader national agenda of austerity.
The federal government, under the leadership of Prime Minister Shehbaz Sharif, has been actively pursuing economic reforms aimed at reducing the size of the government and cutting down on unnecessary expenditures. The rightsizing policy is a critical component of these reforms, focusing on eliminating redundant ministries and departments to ease the financial burden on the national exchequer.
However, the Sindh government’s decision to purchase luxury Toyota Hilux Revo vehicles, each costing over Rs10 million, stands in stark contrast to the federal government’s austerity measures. The Sindh Services, General Administration & Coordination Department has already requested the release of nearly Rs2 billion from the Finance Department for the procurement of these vehicles. According to sources, the assistant commissioners across Sindh will be provided with these vehicles to facilitate their duties.
The timing of this expenditure has raised eyebrows, particularly as the country faces significant economic challenges. Last year, in an effort to lead by example, Prime Minister Shehbaz Sharif directed his ministers and advisers to fly economy class and forgo luxury cars and their salaries as part of an austerity drive. This initiative was expected to save the government around Rs200 billion annually.
Despite these efforts at the federal level, the Sindh government’s decision to proceed with the purchase of these vehicles suggests a different set of priorities. The budget for the fiscal year 2024-25 has already placed immense pressure on the public, with many criticizing the government for failing to provide relief to the struggling salaried class while avoiding austerity measures for government functionaries.
The expenditure comes at a time when Pakistan is grappling with a fragile economy and is awaiting the International Monetary Fund (IMF) Executive Board’s approval of a $7 billion, 37-month Extended Fund Facility (EFF) deal. Economists have long argued that the government should impose a complete ban on the purchase of luxury items and vehicles for all government-run entities, particularly during periods of economic crisis.
A letter from the Section Officer (Budget) for the Secretary of the Government of Sindh, obtained by Geo News, details the request for the release of Rs1.99 billion. The funds, allocated under the Board of Revenue’s budget, are earmarked for the purchase of 138 double-cabin vehicles through a centralized procurement mechanism.
This move by the Sindh government has drawn criticism from various quarters, with analysts arguing that all luxury vehicles should be withdrawn from government officials, including ministers and advisers. They have also suggested that government officials should travel abroad only when absolutely necessary and in economy class.
In contrast to Sindh’s approach, the federal government continues to emphasize the importance of fiscal discipline. Finance Minister Muhammad Aurangzeb recently reaffirmed the government’s commitment to broadening the tax base and rightsizing the federal government as part of efforts to achieve macroeconomic stability.
The decision by the Sindh government to proceed with this significant expenditure highlights the ongoing tension between provincial and federal priorities. As the country navigates its economic challenges, the need for coordinated and disciplined fiscal policies across all levels of government becomes increasingly crucial.
