Shehbaz Sharif has approved a series of austerity measures, including salary deductions for employees of state-owned enterprises, as the government moves to manage the economic impact of rising fuel prices linked to tensions in the Middle East.
Salary Reductions for SOE Employees
According to an official statement from the Prime Minister’s Office, salaries of employees working in state-owned enterprises (SOEs) and autonomous institutions will be reduced by 5% to 30% as part of a broader cost-cutting initiative. The decision was made during a high-level review meeting chaired by the prime minister to assess the effects of global fuel price fluctuations and the government’s response to the ongoing energy crisis.
Measures to Reduce Government Spending
The meeting also reviewed several additional steps aimed at reducing public expenditure. Officials were informed that a third-party audit will oversee a 50% reduction in fuel allocations for government vehicles, while 60% of official vehicles will remain grounded for the next two months.
Another decision taken during the meeting was that government representatives serving on the boards of corporations and institutions will no longer receive participation fees, with those funds instead contributing to national savings.
Simpler Official Activities and Travel Restrictions
Prime Minister Shehbaz Sharif also directed Pakistani embassies around the world to observe March 23 celebrations with simplicity. Additionally, the government has imposed a complete ban on foreign visits by government officials, ministers, and advisers as part of the austerity plan.
Over the next two months, the salaries of cabinet members, ministers, advisers, and special assistants will also be directed toward public relief efforts.
Implementation and Monitoring
The prime minister instructed relevant secretaries to ensure strict implementation of these measures and to submit daily progress reports to a review committee.
The statement added that while the government is introducing a four-day workweek, this change will not apply to law enforcement agencies or the Federal Board of Revenue, which will continue operating on their regular schedules.
Officials say the funds saved through these austerity measures will be allocated entirely to support the public during the ongoing economic challenges.
