Prime Minister Shehbaz Sharif has announced further austerity measures, including salary cuts and a ban on foreign travel for officials, during a high-level meeting reviewing the impact of the current regional situation on petroleum prices and government spending.
The meeting also assessed the progress of previously announced savings measures and decided that funds generated through austerity would be used solely for public relief.
During the meeting, it was decided that employees of government-owned and autonomous institutions would face salary reductions ranging from 5% to 30%, depending on grade.
Officials said the decision was taken in line with earlier salary cuts imposed on government employees.
The meeting agreed that all funds generated through these salary cuts would be used to provide relief to the public in the current economic situation.
Cabinet members to forego salaries
The meeting was informed that cabinet members, ministers, advisers and special assistants will not receive salaries for the next two months. Their salaries will instead be treated as savings and redirected toward public welfare programs.
Officials emphasized that all savings generated through austerity measures will be used exclusively for public relief.
Prime Minister Sharif also ordered a complete ban on foreign visits by government officers, ministers, ministers of state and special assistants.
The meeting was briefed that the ban is already in effect and will remain part of the broader government austerity plan.
Another key decision taken during the meeting was that government representatives on the boards of corporations and semi-government institutions will not receive meeting fees.
The amount that would normally be paid as board participation fees will instead be added to the government’s savings pool.
March 23 celebrations with simplicity
The prime minister also instructed all Pakistani embassies around the world to celebrate Pakistan Day on March 23 with extreme simplicity.
The directive is part of the broader campaign to reduce government expenditures during the current economic and regional challenges.
Four-day work week exemption
The meeting decided that the four-day work week policy will not apply to law enforcement agencies and the Federal Board of Revenue (FBR).
These institutions will continue to operate according to their existing work schedules and procedures due to the nature of their responsibilities.
Officials also decided to conduct a third-party audit over the next two months to assess the implementation of fuel-saving measures and restrictions on government vehicles. The audit will review progress on a 50% reduction in fuel consumption and the grounding of 60% of government vehicles across departments.
The meeting was also briefed on the implementation of a ban on government purchases, including the procurement of new vehicles.
Secretaries to monitor implementation
Prime Minister Sharif directed that relevant federal secretaries personally ensure the implementation and monitoring of all austerity measures.
They have been instructed to submit daily progress reports to a review committee overseeing the savings program.
The meeting was attended by federal ministers Attaullah Tarar, Muhammad Aurangzeb and Ali Pervaiz Malik, along with Minister of State Bilal Azhar Kayani.
The Federal Board of Revenue (FBR) chairman and other senior officials were also present during the briefing on austerity measures and economic stabilization efforts.
