KARACHI: A prominent economist, Dr Kaiser Bengali, has resigned from three key government committees over the federal government’s austerity measures, ARY News reported on Saturday.
In his resignation letter addressed to Finance Minister Muhammad Aurangzeb and Cabinet Secretary Kamran Afzal, Dr. Bengali highlighted his concerns about the government’s approach to cost-cutting. He noted that while efforts to reduce costs were evident, the government’s strategies were flawed.
Dr. Bengali had previously suggested significant measures for cost reduction, including the closure of 17 divisions and 50 government departments.
His recommendations addressed inefficiencies by cutting down on smaller government employees rather than senior officers.
However, Dr. Bengali criticized the current policy of firing lower-grade employees (Grades 1 to 16) while preserving the jobs of higher-ranking officers (Grades 17 to 22).
He argued that removing senior officers could save up to Rs 30 billion annually, but this approach is not being adopted.
The committees from which Dr Kaiser Bengali resigned are the Austerity Committee, the Right-Sizing Committee, and the Government Expenditure Reduction Committee.
Dr. Bengali warned that the economy is on the brink of collapse, exacerbated by a lack of support from the International Monetary Fund (IMF) and other financial institutions.
He also expressed concern about the severe impact on household budgets, leading to increased ‘self-harm’ and widespread financial distress among the population.
