ISLAMABAD: The Cabinet Division has released an official announcement about salary reductions and fuel consumption cuts which will be implemented during the country’s austerity efforts.
The notification states that top officials from government departments and regulatory authorities will experience salary deductions for two months. The deductions will be applied on a slab basis as follows:
5% deduction for salaries between 3 to 10 lakhs
15% deduction for salaries between 10 to 20 lakhs
25% deduction for salaries between 20 to 30 lakhs
30% deduction for salaries exceeding 30 lakhs per month
Government representatives who serve on the boards of state-owned companies will experience a complete fee deduction which results in all fees being sent to the Prime Minister’s Austerity Fund 2026.
The government has established a two-month foreign travel prohibition which allows only ambassadors to represent the country at international events. The Ministry of Foreign Affairs will conduct basic flag-hoisting ceremonies on March 23 because of the new regulations which prohibit them from hosting large-scale events. The government will reduce the foreign missions budget by 20% and decrease officers’ salaries by two days’ pay.
The government expects security forces to decrease their operational fuel consumption by 50% and reduce their vehicle operations by 60%. The Intelligence Bureau (IB) will perform a complete audit of fuel and vehicle usage which will be submitted to the Prime Minister.
All staff members, except employees in FBR, Customs, and IT operations, must follow the work-from-home and vehicle restrictions. Law enforcement agencies do not need to follow the four-day workweek rule.
A subcommittee, headed by the Secretary of Finance, has been set up to monitor the transfer of saved funds into the designated Austerity Fund. All federal and provincial departments will be required to submit their weekly performance reports on the IT portal.
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