Dhaka, April 3 -- The government has suspended interest-free loans for purchasing vehicles for public servants as part of a series of austerity measures aimed at reducing state expenditure.

The decision was taken at a Cabinet meeting held on Thursday night at the Jatiya Sangsad complex with Prime Minister Tarique Rahman in the chair.

The decision was disclosed at a press briefing organised by the Cabinet Division on Friday.

Under the existing policy, officials with the rank of deputy secretary and above are entitled to interest-free loans of up to Tk 30 lakh to purchase vehicles.

They also receive a monthly allowance of Tk 50,000 for maintenance and driver salary, along with an annual depreciation benefit of 10%.

As part of the new m...