Pakistan auctions cars in austerity drive, PM commutes by helicopter

ISLAMABAD, Sept 17 (Reuters): Pakistan's new government on Monday began auctioning off about 100 government-owned vehicles as part of new Prime Minister Imran Khan's highly publicised cost-cutting drive, which has drawn mixed reviews.

Auction official Mohammad Asif told Reuters the vehicles could bring in about 2 billion rupees ($16 million) to the cash-strapped government's coffers, although that estimate depends on finding buyers for four bullet-proof Mercedes, estimated in value together at 1 billion rupees.

The auction has been billed as part of Khan's drive to give "the nation's wealth to its rightful owners", though critics say most of the new government's cost-cutting measures are more symbolism than significant savings.

Former cricket star Khan, 65, took office last month after a populist election campaign in which he railed against what he denounced as the corruption and waste of the two main political parties that have traded power for more than 50 years in between periods of military rule.

Khan has promised to cut costs, including trimming the motorcades of government officials and selling public land.

"It is a change of mindset," Khan said in a speech on Friday.

"I will be counting every single rupee I have to spend on me."

Khan's austerity vows, however, have been undercut by his near-daily helicopter commute from his home in the hills above Islamabad.

Critics say the cost-cutting has been mostly cosmetic.

"There is nothing new in the current austerity drive," said political commentator Raza Rumi.

Auctions of aging government vehicles, for example, have taken place for years, though not so publicised.

The 36 Mercedes and BMW vehicles was a larger number than at previous auctions - and the sale offered bullet-proof luxury sedans estimated to be worth 250 million rupees (about $2 million) each.

Still, nearly three-quarters of the 101 vehicles on offer were more than 10 years old, some noticeably knocked about. Two were 32-year-old Toyota Corollas.

Even if the auction were to bring in its projected 2 billion rupees, that is a drop in the bucket compared with the government's 5.9 trillion rupee ($48.19 billion) budget, which projects a 1.7 trillion rupees in deficit spending.

Still, Khan's information minister, Fawad Chaudhry, said even symbolic steps were important for building national unity.

Public morale may be important in the coming year as Pakistan could face painful conditions for foreign financing - possibly an International Monetary Fund bailout - to address dwindling foreign currency reserves and a ballooning current account deficit.