Pakistan’s Khan says austerity begins at home
Pakistani Prime Minister Imran Khan will have only two servants instead of the normal 524 and intends to sell a fleet of bullet-proof vehicles.
Mr Khan wants to set an example of austerity, but selling the secure cars is a bold step in a country where extremists regularly attack people in vehicles.
In his first speech as prime minister on Sunday he called on the wealthy to start paying taxes and said the country would begin an austerity drive to cut debt.
Mr Khan, 65, set out his vision for a “New Pakistan” and spoke about the need to reshape the country by introducing an Islamic welfare system, reducing poverty and levels of debt.
“We have formed a bad habit of living on loans and aid from other countries,” he said, under a portrait of his hero and Pakistan founder Muhammad Ali Jinnah. “No country can prosper like this. A country must stand on its own feet.”
The former national cricket captain was sworn in as prime minister on Saturday after his party swept to power in last month’s election.
Mr Khan’s popularity has soared in recent years during his anti-corruption drive, which has resonated with many young voters and the expanding middle class in the mainly Muslim nation with a population of 208 million.
But he has inherited problems at home and abroad, including a currency crisis and strained relations with Pakistan’s historic ally, the US.
Mr Khan did not shed any light on policies to deal with the currency problems that analysts expect will force Pakistan to seek another bailout from the International Monetary Fund.
Instead, he focused on debt and said former central bank governor Ishrat Husain would lead a task force to drive the austerity campaign.
Criticising what he called the colonial-era mindset and lavish lifestyles of Pakistan’s ruling elite, Mr Khan announced he would live in a small, three-bedroom house instead of the palatial prime minister’s residence.
“I want to tell my people I will live a simple life, I will save your money,” he said.
Mr Khan appealed to overseas Pakistanis to invest in the country and urged the wealthy to start paying taxes in a nation where less than 1 per cent of the population files income tax returns.
“It is your responsibility to pay taxes,” he said. “Think of this as a struggle, that you need to pay tax for the betterment of your country.”
Mr Khan, who has never held a government position, named his 21-person cabinet over the weekend, opting mostly for experienced politicians.