AUSTERITY MEASURES: Complete ban on purchase of motor vehicles by government authorities


ISLAMABAD: The government has put a complete ban on purchase of motor vehicles (except motorcycles) by all ministries, divisions and departments during current fiscal year.




The decision has been taken under austerity measures by PTI government, according to a notification dated December 03, 2018 issued by Finance Division.

The following austerity measures will be enforced during the financial year 2018/2019 with immediate effect:

i. There will be a complete ban on purchase of all types of vehicles (excluding motorcycles) both for current as well as development expenditure expect operational vehicles of law enforcing agencies for with NOC from Finance Division would be required.

ii. Creation of new posts will be banned except those required for development projects and approved by the competent authority.

iii. Entitlement of periodical, magazines, news papers etc. of entitled officers will remain restricted to only one.

iv. The delegations for foreign visits will be restricted to least number consisting of most relevant delegates only.

v. In consideration of financial constraints, keeping in view the austerity drive of present government and to save public money, it has been decided to effect a saving of 10 percent in current expenditure. All principal accounting officers (PAOs) are requested to work out details of savings (10 percent) under the heads operating expenses, physical assets and repairs and maintenance in current expenditure from their allocated budget and the amount so worked be surrendered. Relevant financial advisory/deputy financial advisors will work with the ministries/divisions and will ensure 10 percent savings latest by December 15, 2018.

vi. With regard to para 1 (i&ii) above, a vehicle purchase/creation of posts committee has been constituted in finance division with the following composition to review the proposals seeking relaxation of ban for purchase of vehicle:

a. Additional Finance Secretary (Expenditure): in chair

b. Representative of the Concerned Ministry: member

c. Senior Joint Secretary/Joint Secretary (Expenditure): Member

d. Finance Advisor Concerned: Member

All ministries/divisions had been asked to circulate the instructions to all departments under their administrative control for strict compliance.

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