PM Shehbaz orders salary cuts, travel bans, and fleet restrictions to boost public relief funds

Prime Minister Shehbaz Sharif on Saturday announced sweeping austerity measures, including a 5 to 30 percent reduction in salaries for employees of State-Owned Enterprises and autonomous institutions under government supervision, as part of a drive to channel additional resources toward public welfare.

The announcement came during a high-level meeting reviewing government savings measures and the impact of regional developments on petroleum product prices. Officials said all funds saved from salary reductions and the removal of board participation fees for government representatives on corporate boards will be deposited into the government’s public relief fund.

For the next two months, 25 percent of the salaries of cabinet members, ministers, advisers, and special assistants will be redirected to public welfare. Foreign travel for these officials has been entirely banned, with teleconferencing and online meetings to be prioritised.

Operational austerity measures were also approved, including a 50 percent reduction in fuel allocations for government vehicles, grounding 60 percent of the fleet, and restrictions on new procurements. A third-party audit will be conducted over two months to ensure compliance with the fleet and fuel cuts. Law enforcement agencies and the Federal Board of Revenue will continue to operate under existing schedules and will not follow the four-day workweek applied to other government offices.

Sharif instructed Pakistani embassies worldwide to observe the 23 March national celebrations with utmost simplicity. He stressed that all austerity and operational measures must be strictly implemented, with secretaries reporting daily to a dedicated review committee. Officials noted that these measures are intended to stabilise petroleum prices and maximise resources for public relief amid current economic challenges.

The meeting was attended by Federal Ministers Attaullah Tarar, Muhammad Aurangzeb, Ali Pervaiz Malik, Minister of State Bilal Azhar Kiyani, the FBR Chairman, and other senior officials.