Major Austerity Measures announced by PM Shehbaz amid Iran War Fallout

2026-03-09 - 16:44

ISLAMABAD – Prime Minister Shehbaz Sharif unveiled a series of strict measures aimed at cutting government expenses and improving efficiency across public institutions as Pakistan is bearuing brunt of Iran-US war. Four-Day Work Week for Government Offices Government offices will now remain open only four days a week as part of the new cost-saving strategy. 50% Staff to Work From Home Across government departments, half of the employees will work remotely from home, except those providing essential and critical services. Two Weeks Holiday for School Salary Cuts Ministers, advisers, and special assistants will not take salaries for 2 months. Federal and provincial cabinet members will also forgo 2 months’ salaries. Members of Parliament salaries reduced by 50%. Two days’ salary deduction from more than 300,000 government employees. Grade 20 and above officers will also face a 2-day salary deduction. Major Cuts to Official Spending To reduce unnecessary expenses, seminars and official events will no longer be held in hotels. Instead, they will be organized within government institutions. No more Foreign visits Foreign visits of federal and provincial ministers and advisers banned. Only essential foreign visits in national interest will be allowed. Prime Minister, governors, and chief ministers also restricted from foreign trips. Official dinners and iftar parties banned. Government seminars will be held in government buildings instead of hotels. No more Iftar Parties this Ramadan In a strong austerity move, the government has completely banned official dinners and Iftar gatherings funded by public money. Major Changes for Universities All Higher Education institutions have been instructed to switch to online classes, marking a major shift in how university education will be conducted during this period. Other Measures Ambulances and public transport buses are exempt from these restrictions. Special NADRA campaign launched for women’s registration. Action will be taken against petrol hoarders. These sweeping measures signal a serious push toward cutting government spending and restructuring how public institutions operate. More updates to follow as the policy begins to take effect...