PM Announces Fuel, Salary Cuts, Foreign Travel Ban & School Holidays

ISLAMABAD: In a national televised address, Prime Minister Shahbaz Sharif unveiled a comprehensive set of austerity measures aimed at tackling the dual challenges of escalating regional security tensions and the soaring global oil prices.

Acknowledging the difficult economic realities, Prime Minister Sharif stated that the government had made hard decisions to reduce the impact of these external factors on Pakistan’s economy. While the energy crisis is beyond Pakistan’s direct control, he noted that the government had implemented these measures to alleviate the strain on the national budget and minimize the effects of rising fuel prices on the public.

Details of the Austerity Measures

The Prime Minister announced a 50% reduction in fuel allocations for all government vehicles for the next two months. However, essential services such as ambulances and public transport buses will be exempt from this reduction.

Additionally, 60% of all government vehicles will be grounded for the same period as part of an effort to reduce unnecessary fuel consumption and curb government spending.

As part of the austerity efforts, cabinet members, ministers, advisors, and assistants have voluntarily agreed to forgo two months’ salaries. Parliamentarians will also face a 25% cut in their salaries. Senior civil servants (Grade 20 and above) whose salaries exceed 300,000 rupees per month will have two days’ of their salary deducted with the funds being redirected for public relief.

Moreover, a 25pc cut has been impsoed on salaries of all government employees.

A 20% reduction in non-salary expenditures across all government departments will be enforced. Furthermore, a complete ban has been imposed on the purchase of non-essential goods by government departments, ensuring that public funds are spent prudently.

In an effort to curb unnecessary expenditures, a ban has been imposed on foreign trips for all government officials, including ministers, advisors, and governors. This measure is expected to save significant amounts of public money.

The government will prioritize virtual meetings, such as video conferences, over in-person engagements. Official events such as dinners and Iftar parties will also be banned, while seminars and conferences will be hosted at government venues instead of costly hotels.

To save on energy and reduce fuel consumption, the government has mandated that 50% of the public and private sector workforce—except for those involved in essential services—work from home for the foreseeable future.

In an additional effort to reduce costs, the government will operate its offices for only four days per week, with one additional day off. This policy, however, will not apply to banks, industries, or the agricultural sector, which are deemed critical for the economy.

In response to the growing economic challenges, the Prime Minister announced that all schools will have a two-week holiday starting at the end of this week.

Meanwhile, higher education institutions will shift to online learning, ensuring that education continues despite the disruptions.