ISLAMABAD: In a high-level meeting chaired by Prime Minister Shehbaz Sharif, the Pakistani government has approved a series of aggressive austerity measures designed to curb public expenditure and mitigate the impact of a severe national fuel crisis. The most significant of these decisions involves a mandatory salary reduction for employees working in state-owned enterprises and autonomous government institutions, with cuts ranging from 5% to as high as 30%. Government officials have stated that the funds recovered through these reductions will be redirected toward providing direct financial relief to the general public struggling with rising costs.
The government’s strategy focuses heavily on reducing fuel consumption within the administration over the next two months. To achieve this, the Prime Minister has ordered a 50% reduction in fuel allocation for all government departments and directed that approximately 60% of the official vehicle fleet be taken off the roads immediately. Additionally, a complete moratorium has been placed on the procurement of new government vehicles, and strict prohibitions have been implemented regarding foreign travel for ministers and senior bureaucrats. To further streamline costs, the administration has also abolished the attendance fees traditionally paid to officials for participating in government meetings.
These emergency measures follow a sharp spike in international oil prices, which has forced a local fuel price hike of approximately 55 rupees per litre in Pakistan. This surge has placed immense pressure on the national treasury and the purchasing power of the average citizen. By restricting the mobility of the state machinery and slashing the payroll of public sector organisations, the Sharif administration hopes to stabilize the economy and reduce the dependency on high-priced energy imports during this volatile period.
The Cabinet has emphasised that these steps are essential to avoid a total economic collapse and to ensure that essential services remain functional for the population. While the move is expected to face some resistance from within the public sector workforce, the government maintains that the elite and state institutions must share the burden of the economic downturn. Monitoring committees have been established to ensure that the fuel reduction targets and travel bans are strictly enforced across all provinces and federal centres.
