In a move aimed at addressing the economic challenges posed by rising fuel prices, Pakistan’s Prime Minister Shehbaz Sharif has sanctioned salary cuts of 5 to 30 percent for employees of state-owned enterprises (SOEs) and autonomous institutions. This decision was made during a high-level review meeting that assessed various austerity measures discussed earlier in the week. The measures are part of an effort to counter the economic repercussions triggered by the ongoing US-Israel-Iran conflict, which has influenced global fuel prices.

Details of the Salary Cuts

The Prime Minister’s Office issued a statement after the meeting, indicating that the salary reductions would mirror those imposed on government employees. The savings generated from these cuts are intended exclusively for public welfare initiatives. Additionally, the meeting participants were informed of a planned third-party audit to enforce a 50 percent reduction in fuel allocations for government vehicles over the next two months. It was also announced that 60 percent of government vehicles will be removed from operation during this period.

Additional Cost-Saving Measures

Further decisions made during the meeting include the discontinuation of participation fees for government representatives serving on various boards and institutions. These fees will now contribute to the overall savings strategy. The meeting also highlighted the necessity of a complete ban on the acquisition of new vehicles and other government purchases to enhance frugality within state operations. Salaries for cabinet members, ministers, advisors, and special assistants for the next two months will also be redirected towards public welfare projects as part of the cost-saving measures.

Travel Restrictions and Fuel Price Impact

The Prime Minister reaffirmed that a ban on international travel for government officials, including ministers and special assistants, will remain in place. The ongoing conflict has escalated petrol prices significantly, with an increase of Rs 55 per liter announced last Friday. In response, the government is implementing additional austerity measures aimed at reducing fuel consumption and mitigating the fallout from this economic crisis. Previous strategies included limiting fuel allocations for government vehicles by half for two months and instating a four-day work week.

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