Islamabad: Due to the ongoing war situation, the Prime Minister has approved additional austerity measures. Federal and provincial ministers and advisers will forgo two months of their salaries and allowances, while government officers will face a two-day salary deduction.
According to sources, a meeting chaired by the Prime Minister was held to approve the national austerity policy. Chief Ministers of all four provinces, as well as the Prime Ministers of Gilgit-Baltistan and Azad Jammu and Kashmir, were invited to attend.
The Prime Minister approved additional cost-cutting measures in light of the war situation. The decisions will be implemented uniformly across all ministries, departments, autonomous institutions, the judiciary, and parliament.
Ban on Purchase of New Items
The government has imposed a complete ban on the purchase of new durable items until June 2026. IT-related procurement will only be allowed after verification by the National Information Technology Board (NITB) and approval from the austerity committee.
Ban on Official Foreign Visits
Official foreign trips by cabinet members, members of parliament, and government officials have been banned. The restriction will apply to all officials of both federal and provincial governments. Except for unavoidable official engagements, no government-funded foreign travel will be allowed. If travel is unavoidable, all officials will be required to travel in economy class. The ban will apply to trips funded either by the government or donors.
Fuel for Government Vehicles Cut by Half
Fuel supply for all government vehicles will be reduced by 50 percent for the next two months. However, operational vehicles such as government buses, ambulances, and motorcycles will be exempt. The reduction is expected to save approximately Rs4.5 billion at the federal level.
Ban on Purchase of New Vehicles
The government has also decided to ground 60 percent of government vehicles for two months. Additionally, the purchase of all types of new vehicles has been completely banned until June 2026.
Rightsizing Program to Continue
The government will continue its rightsizing program aimed at reducing expenditures. Real financial savings targets are expected to be set in the upcoming budget. Teleconferencing and virtual meetings will be promoted to cut costs. Government banquets have been banned, except those held in honor of foreign delegations. Official seminars, trainings, and conferences will require prior approval from a special committee, which will assess their necessity and priority. Such events will be directed to use government auditoriums and facilities.
Salary Cuts for Ministers and Officers
It was decided that all federal and provincial ministers, advisers, and special assistants will voluntarily give up two months of their salaries and allowances. Government officers in Grade 20 and above, earning more than Rs300,000 per month, will face a two-day salary deduction.
20% Cut in Non-Development Budget
A 20 percent reduction has also been announced in the non-development budget for the fourth quarter of the fiscal year across all federal and provincial departments. The budget cut is expected to save Rs22 billion at the federal level.
