Bad News! Govt decides to cut employees salaries by up to 30%

2026-03-14 - 09:23

ISLAMABAD – Prime Minister Shahbaz Sharif has announced 5 to 30 percent cut in salaries of employees in federal and autonomous institutions under ongoing austerity drive. In a high-level meeting focused on stabilizing petroleum prices and reviewing savings measures, the premier said that funds saved through ongoing government austerity measures will be redirected to public relief initiatives. Government representatives on corporate boards will no longer receive meeting fees, and all embassies have been instructed to observe March 23 celebrations with simplicity. The prime minister directed the Federal Board of Revenue and law enforcement agencies to continue their work as usual. Measures include a 50 percent reduction in fuel use for official vehicles over the next two months, grounding 60 percent of the fleet, implementing third-party audits, and halting new vehicle purchases. Cabinet members, ministers, advisers, and special assistants will have their salaries allocated for public welfare, with a complete ban on foreign trips. Online meetings will be prioritized to reduce expenses. PM Shehbaz r instructed relevant secretaries to monitor these austerity measures and submit daily reports. Federal ministers Attaullah Tarar, Muhammad Aurangzeb, Ali Pervaiz Malik, Bilal Azhar Kiani, and the FBR chairman attended the meeting.