Pakistan government cuts state enterprise employee salaries five to thirty percent
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Gilani directs austerity measures for Senate aimed at saving Rs700m
Senate Chairman Yousuf Raza Gilani directed on Tuesday the implementation of “wide-ranging austerity measures”, projecting a reduction of more than 50 per cent in the Senate Secretariat’s remaining budgetary utilisation for the current fiscal year, which is believed to translate into savings of around Rs700-750 million. A statement issued by the Senate Secretariat said that Gilani presided over a high-level meeting at the secretariat today to review the austerity measures and discuss their implementation in light of the country’s economic situation. The austerity measures for the secretariat align with a broader initiative taken by the government to deal with a global fuel crunch resulting from the ongoing Middle East conflict. The discussion during the meeting focused on “significant cuts in Senate expenditures, beginning with substantial reductions in the budget of the chairman’s office”, the statement said. “Adopting a top-down approach to fiscal discipline, the chairman directed that austerity measures must begin at the highest level,” it added. It further stated that, accordingly, significant cuts had been ordered in the operational budget of the chairman’s office. Outlining the austerity measures, the statement said Gilani issued directives for “the immediate enforcement of austerity measures across the secretariat”. “These include a complete ban on foreign travel, a 50 per cent reduction in POL (petrol, oil, and lubricants) consumption, the grounding of 60pc official vehicles, a strict ban on non-essential procurements, and the implementation of salary deductions or contributions in line with government policy,” the statement detailed. Additionally, it continued, administrative arrangements had been introduced for human resource management, including “rotation-based pick-and-drop facilities aimed at minimising operational costs and reducing fuel consumption”. Moreover, any future procurement would be subject to review and approval by a dedicated Senate Austerity Committee, the statement said. “As a result of these measures, the Senate Secretariat expects to reduce more than 50pc of its remaining budgetary utilisation for the current fiscal year, resulting in estimated savings of Rs 700 to 750 million,” the statement read. It quoted Gilani as saying: “Public office is a sacred trust requiring the highest standards of financial prudence. Transparency, accountability, and fiscal discipline must remain the guiding principles in all administrative and financial matters of the secretariat”. He added that austerity was not merely a policy directive but a collective national responsibility, directing all wings of the secretariat to ensure strict compliance with his instructions to promote efficiency, responsible governance, and public confidence in state institutions. Last week, the government had announced unprecedented austerity measures to cope with the situation that emerged due to the US-Israel war on Iran, which has led to a global oil crisis affecting various countries, including Pakistan. The measures included a 50 per cent cut in fuel allowance for official vehicles and a four-day work week. It was also decided that 50pc of staff in the public sector would work from home; however, those providing essential services are exempt. The National Assembly Secretariat has also implemented comprehensive austerity and fuel conservation measures aimed at ensuring prudent utilisation of public resources, reducing energy consumption, and supporting the government’s national austerity drive. Under the measures, the salaries of MNAs have been cut by 25 per cent, four-day work weeks are being observed, and only 20pc of staff is performing their duties in person while the remaining 80pc is working virtually from home through a rotational roster. The announcement of austerity measures for the Senate by Gilani came a day after the secretariat issued a rebuttal on reports of the purchase of a luxury vehicle for the Senate chairperson. The rebuttal, however, left several questions unanswered as it essentially confirmed the purchase of the vehicle, reportedly for Rs90m.
DawnMarch 17, 2026 at 03:52 PM UTCLegislators grumble about PM’s call to forgo pay
• Parliamentarians issued form to choose salary donation • Say cuts acceptable for national causes, but not by ‘dictation’ ISLAMABAD: Some parliamentarians from both sides of the aisle are branding Prime Minister Shehbaz Sharif’s recent order regarding the forgoing of their two months’ salaries as “direct interference in constitutional matters”, creating a divide among lawmakers over the announced deduction. A senior legislator, who did not wish to be named, told Dawn on Sunday that parliamentarians, including some from the ruling PML-N, were “ not happy” with the prime minister’s decision to deduct their two months’ salaries to share the economic burden being borne by the country due to the US-Israel war on Iran and the global oil crisis. “Parliamentarians never oppose deductions from their salaries for any national cause, but this time they have termed the prime minister’s order as a dictation which they cannot tolerate,” the legislator said. He said many lawmakers had decided not to donate their two-month salaries after being offended by the premier’s directives. PM Shehbaz announced a number of austerity measures last week in view of the economic pressures triggered by rising global oil prices. The measures included a four-day work week for government offices, deduction of two months’ salaries of parliamentarians, a ban on official Iftar-dinner receptions, cancellation of foreign visits, reduction in the use of official vehicles, closure of schools and colleges and online classes for universities. The austerity steps were announced after the recent escalation in the Middle East pushed global oil prices higher, raising concerns about its potential impact on Pakistan’s fragile economy and fuel import bill. Meanwhile, a source in Parliament House said that after several lawmakers opposed the prime minister’s announcement, a form was issued to them in which they could mention whether they wished to donate their salaries or not. “In case any parliamentarian refuses to donate their salary and states so in the form, the government cannot deduct his or her salary,” the source said. The source added that legislators believed their parliamentary privilege had been undermined and that they had the right to make their own decision on the matter. They were also of the view that the total salaries of parliamentarians would not exceed Rs130 million and that the amount would not make a significant difference to the government’s austerity drive. Published in Dawn, March 16th, 2026
DawnMarch 16, 2026 at 03:26 AM UTCEmployees of SOEs, other govt-supervised bodies to face 5-30pc salary cut as part of austerity measures: PMO
Employees of state-owned enterprises (SOEs) and autonomous institutions under government patronage would see their salaries cut by five to 30 per cent under the government’s austerity measures, which would go towards public relief, it was decided on Saturday. The move adds to a host of austerity measures announced by Prime Minister Shehbaz Sharif on Monday in view of the global oil crisis triggered by the US-Israel war on Iran, which has hiked local fuel prices. On Saturday, PM Shehbaz chaired a meeting reviewing the impact of petroleum product prices and the implementation of government austerity measures in view of the ongoing situation in the Middle East, a press release issued by the Prime Minister’s Office (PMO) said. “It was decided in the meeting that, like government employees, there will be a 5-30pc cut in the salaries of employees of state-owned enterprises and autonomous institutions under government patronage,” the statement said. It added that the funds saved as a result of all austerity measures would be used “only for public relief”. The meeting was attended by Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Information Minister Attaullah Tarar, Minister of State for Finance Bilal Azhar Kayani, and other relevant senior officials. Federal Board of Revenue’s (FBR) Chairman Rashid Mahmood Langrial was also present. While reviewing formerly-announced initatives, the meeting decided that the four-day work week would not be applicable to law enforcement agencies (LEAs) and the FBR, who would carry out their duties as normal. It reviewed measures that had been previously announced, reiterating that a third-party audit would be conducted in the next two months regarding the decisions to ground 60pc of government vehicles and to cut 50pc of the fuel allotted to government vehicles of all departments. “The meeting was also briefed on the implementation of the government’s complete ban on the purchase of new vehicles and the ban on all other government purchases,” the PMO statement added. In addition, the next two months’ salaries of cabinet members, ministers, advisers and special assistants (SAPMs) would also be “used as savings for public welfare”. The meeting was also informed about the implementation of the decision to completely ban foreign visits of ministers, advisers and SAPMs, and instead prioritise teleconferencing and online meetings. “The complete ban on foreign visits of government officers, ministers, ministers of state and special assistants will remain in place,” PM Shehbaz was quoted as saying. The meeting also decided that corporations and other institutions with government representatives on their boards would not charge a fee for them to participate in the board, and that this fee would be included in the savings, it said. “The premier also directed all Pakistani embassies around the world to celebrate the celebrations of March 23 with utmost simplicity,” the statement added, referring to Pakistan Day. It said that the premier issued instructions that “the concerned secretaries will implement and monitor all these austerity orders and measures and will submit a report to the review committee on a daily basis”. The US-Iran war, which began two weeks ago, has had a dramatic effect on the economy of Pakistan and the rest of the world, as the closure of the Strait of Hormuz has caused massive fuel price hikes. The government had announced a Rs55 per litre increase in petrol and high-speed diesel prices last week, citing a surge in global oil prices. On Friday, when the government was due to announce new prices under the new weekly revision plan, PM Shehbaz decided that the prices would remain unchanged despite the uptick in the international oil market.
DawnMarch 14, 2026 at 11:08 AM UTC