Pakistan Salary Cut Policy: Government Announces Austerity Measures
The Pakistan salary cut policy has been introduced as part of a nationwide austerity plan. The government aims to reduce spending and save public funds. According to the Cabinet Division of Pakistan, the new measures apply to several government departments and regulatory authorities. Officials confirmed the move on Sunday as part of a broader cost saving strategy.
Salary Reductions for Senior Officials
Under the new policy, senior government officials will face temporary salary deductions for two months. The deductions will follow a slab based system. Officials earning between Rs300,000 and Rs1 million will see a five percent reduction. Salaries between Rs1 million and Rs2 million will face a 15 percent cut. Meanwhile, employees earning Rs2 million to Rs3 million will receive a 25 percent deduction. Those earning above Rs3 million will face a 30 percent reduction.
Funds Directed to Austerity Fund
Authorities will deposit all deductions into the Prime Minister Austerity Fund 2026. The government expects this step to support financial stability. In addition, representatives serving on boards of public and private companies will lose their board fees. The policy orders a full deduction of these payments. As a result, the government hopes to increase national savings during the austerity drive.
Restrictions on Travel and Government Spending
The austerity plan also introduces strict limits on official spending. For example, foreign visits by government officials are banned for two months. Instead, ambassadors will represent Pakistan at international events. Furthermore, the Ministry of Foreign Affairs will mark Pakistan Day with a simple flag hoisting ceremony. Budgets for foreign missions will also drop by 20 percent. Officers working abroad will face a two.day salary deduction as part of the cost saving effort.
Operational Agencies Get Limited Exemptions
Some agencies will remain exempt from certain restrictions. For instance, the Federal Board of Revenue and Customs operations will continue normal work schedules. Law enforcement departments will also operate without the four-day work week rule. Officials say these agencies play a critical role in national operations. However, security institutions must still reduce fuel use by 50 percent. Around 60 percent of government vehicles will remain parked during the austerity period. The Intelligence Bureau will audit fuel use and vehicle operations. Officials will submit a detailed report to Shehbaz Sharif.
Finally, all departments must submit weekly performance reports through an IT portal. A committee led by the Finance Secretary will monitor savings and transfer funds to the austerity program.
