ISLAMABAD: The federal government has decided that the money saved through newly introduced austerity measures will be utilized to provide relief to the public.
The decision was made during a meeting chaired by Prime Minister Shehbaz Sharif to evaluate the impact of regional developments on petroleum prices and review the progress of the government’s cost-cutting initiatives amid ongoing tensions in the Middle East.
During the session, officials examined strategies to keep petroleum product prices stable while also discussing steps taken so far to reduce government expenditures.
The government approved salary reductions ranging from 5 to 30 percent for employees of state-owned enterprises and autonomous bodies, similar to the cuts already imposed on federal government staff. The funds saved through these reductions will be directed toward public welfare measures.
It was also decided that government-appointed board members in various corporations and institutions will no longer receive meeting or participation fees, further increasing the pool of savings.
Prime Minister Shehbaz Sharif also directed Pakistani embassies around the world to mark Pakistan Day on March 23 in a simple manner. Meanwhile, law-enforcement agencies and the Federal Board of Revenue will continue their routine operations without changes to their weekly schedules.
The meeting further approved strict controls on government vehicle use, including a 50 percent reduction in fuel allocation and parking about 60 percent of the official fleet for the next two months. These steps will be monitored through a third-party audit. In addition, the purchase of new government vehicles and other non-essential items has been suspended.
Salaries of cabinet members, ministers, advisers and special assistants will be redirected toward public relief programs, while foreign travel for government officials has been completely banned. Authorities have been instructed to rely more on virtual meetings and teleconferencing to reduce expenses.
The prime minister stressed that secretaries of relevant departments will be responsible for ensuring these austerity steps are implemented and must provide daily updates to the review committee.
The meeting was attended by several officials, including federal ministers Attaullah Tarar, Muhammad Aurangzeb, Ali Pervaiz Malik and Minister of State Bilal Azhar Kayani, along with the chairman of the Federal Board of Revenue and other senior government representatives.
