PM Shehbaz expands austerity drive with SOE salary cuts

Prime Minister Shehbaz Sharif approved a new round of austerity steps aimed at cushioning Pakistan from the economic pressure created by the ongoing Middle East conflict and volatile fuel prices. The plan includes salary deductions ranging from 5% to 30% for employees of state-owned enterprises and autonomous institutions, while government board representatives will no longer receive participation fees.

Officials told the prime minister that a third-party audit would monitor a 50% cut in fuel allocations for official vehicles and the temporary grounding of a large share of the government fleet. The government also decided that foreign visits by ministers and senior officials would remain banned, while savings generated through the measures would be redirected toward public relief.

The package builds on previously announced steps, including voluntary pay cuts for ministers and lawmakers, reduced non-essential spending, work-from-home arrangements for some staff, a four-day workweek for many offices, and restrictions on public-sector procurement and official events.