ISLAMABAD - The federal government has approved the 'Compulsory Monetisation of Transport Facility for grade 20 to 22 government officials effective from January 1st, 2012, In line with the cabinet decision of June 3, 2011. From January 1st, 2012, the officers shall pay for petrol, maintenance/ repair expenditure, insurance, transfer fee, as well as any other duties and taxes on the vehicle in addition to payment of installments. The decision has been taken in line with the cabinet decision taken in its meeting held on June 3, 2011. This would help eliminate the misuse of official vehicles, said a press release. Prime Minister Syed Yousaf Raza Gilani has directed the Cabinet Division should implement this policy in a transparent manner to take the reforms agenda of the government forward. The main objective of this transport monetisation policy is within the overall context of observance of the austerity measures approved in the Federal Budget 2011-12. Its overall implementation shall be the responsibility of all Federal Secretaries and Principal Accounting Officers, who will particularly ensure that each of the entitled officers of grade 20 to 22 is not in possession or in use of any project vehicle or the departmental operational or general duty vehicle, as well as any vehicle of an organisation or body corporate in his ex-officio capacity, except the only vehicle allocated to him/her through this Monetisation Policy. An undertaking shall also be obtained from each entitled officer that in case officer is found involved in unauthorised use of vehicle, he shall be liable to be preceded under the relevant rules. In this regard, a number of certificates and declarations have been prescribed, which shall be required to be signed by each officer including the Principal Accounting Officer for implementation of this policy. According to the salient features of the policy, there will be a complete ban on the purchase of staff cars. The grade 20 to 22 officers who have been provided the official transport shall be given the first option to purchase the allocated cars as per prescribed formula already in vogue. The value of the vehicles shall be recovered from the pay of the officers before their superannuating while no green number plates will be allowed for the vehicle purchased by the officers. All transfer fees and duties will be borne by the officers themselves. According to the decision Ministries, Divisions and Departments will maintain a minimum Pool of vehicles for protocol and operational duties, which shall be determined, keeping in view its strength and functions. The vehicles which become surplus due to enforcement of this Policy shall be surrendered to the Cabinet Divisions Central Pool of cars for further disposal as per Governments rules and procedure. On the basis of the expenditure presently being incurred on provision, maintenance of the official transport, the entitled officers of grade 20 would get Rs 65,960, grade 21, Rs 77,430 and officer of grade 22 could spend Rs 95,910 for transport monetisation per month. The services of the regular permanent drivers will be offered to the entitled officers on optional basis, on deduction of Rs 10,000/- per month from the above monetised value and no new recruitment of drivers will be made until the drivers rendered surplus are adjusted by the Establishment Division. According to the policy no additional budget shall be provided to implement the Monetisation Policy. The budget provision meant for petrol, maintenance expenditure of the vehicles shall be diverted to meet the Monetisation expenses. This is a major step towards reforms in the government sector, which will result in savings and also discourage misuse of official transport facility, as the Policy is being implemented by taking all possible measures to ensure its success through the defined parameters. The monetization of transport and accommodation by the federal and provincial govts is very critical for fiscal management. Now the provinces, whose role has become very crucial in fiscal management after the approval of 18th Constitutional Amendment and NFC, also need to move towards the monetisation. Such measures would be of great help to the federal and provincial economic teams.