The federal government has widened its austerity campaign by announcing salary cuts for employees working in state-owned enterprises and autonomous institutions. The decision was taken during a meeting chaired by Prime Minister Shehbaz Sharif on Saturday, as Pakistan grapples with rising fuel prices linked to global tensions in the Middle East.
According to a statement issued by the Prime Minister’s Office, salaries in these institutions will be reduced by five to 30%, similar to cuts already announced for government employees. Officials said the money saved through these measures will be used for public relief initiatives.
The meeting reviewed the impact of rising petroleum prices and assessed the implementation of austerity measures announced earlier in the week. Senior officials present included Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Information Minister Attaullah Tarar and Federal Board of Revenue Chairman Rashid Mahmood Langrial.
The government had already introduced a series of steps aimed at reducing public spending. These include grounding 60% of government vehicles, cutting fuel allocations by half, and placing a complete ban on the purchase of new government vehicles.
Authorities also confirmed that cabinet members, ministers, advisers and special assistants will contribute their next two months’ salaries toward savings meant for public welfare.
In addition, the government has imposed a ban on foreign travel for ministers, advisers, special assistants and senior government officers. Officials have been instructed to rely on virtual meetings and teleconferencing instead.
Another decision taken during the meeting was that corporations and institutions where the government has representation on boards will no longer pay participation fees to government nominees, with these funds also added to the austerity savings.
However, some departments will be exempt from certain measures. The government clarified that the four-day work week will not apply to law enforcement agencies and the Federal Board of Revenue, which will continue normal operations.
The prime minister also directed that Pakistan Day celebrations on March 23 at embassies worldwide be held with simplicity, reflecting the government’s broader cost-saving policy.
