Prime Minister Shehbaz Sharif has approved PM Shehbaz’s austerity measures that include salary deductions of 5% to 30% for employees of state-owned enterprises (SOEs) and autonomous institutions. The move is part of a wider government push to reduce spending amid the fallout from the ongoing Middle East war.
According to an official statement from the Prime Minister’s Office, the premier chaired a high-level meeting on Saturday to review fuel price fluctuations and the implementation of government austerity steps.
The review came days after PM Shehbaz announced broad savings measures to address the global fuel crisis linked to the ongoing US-Israel-Iran conflict.
Officials told the meeting that a third-party audit will monitor a 50% cut in fuel allocations for government vehicles. In addition, 60% of those vehicles will remain off the road over the next two months.
The meeting also decided that government representatives serving on corporate and institutional boards will no longer receive participation fees. The official statement said these savings will be added to the total relief amount.
Furthermore, the government will continue a complete ban on foreign visits by officials, ministers, ministers of state, and special assistants. PM Shehbaz directed the relevant secretaries to enforce all measures and submit daily reports to the review committee.
The meeting disclosed that salaries of cabinet members, ministers, advisers, and special assistants will also contribute to public relief over the next two months.
Prime Minister Shehbaz also directed all Pakistani embassies to observe March 23 celebrations with utmost simplicity. All funds generated through these measures will go directly toward supporting the public, the official statement confirmed.
وزیراعظم شہباز شریف نے اعلان کیا کہ دو ماہ کے لیے 60 فیصد سرکاری گاڑیاں بند رہیں گی، ایندھن کا استعمال آدھا کر دیا جائے گا، سرکاری اخراجات میں 20 فیصد کمی ہوگی اور اعلیٰ افسران کی تنخواہوں سے دو دن کی کٹوتی کی جائے گی تاکہ مشکل عالمی حالات میں ریاست خود بھی قربانی دے۔ pic.twitter.com/egSFIgywo0
— Muzamal Suharwardy (@M_Suharwardy) March 9, 2026This signals that the government wants visible cuts not only in administrative spending but also in official ceremonies and benefits.
The four-day workweek will not apply to law enforcement agencies and the Federal Board of Revenue (FBR). Both will continue normal operations despite the wider austerity drive.
That exemption indicates the government wants key enforcement and revenue functions to continue without disruption.
