Major Austerity Measures announced by PM Shehbaz Sharif amid Iran War Fallout

2026-03-09 - 17:43

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 Sharif said the government had decided to cut the fuel allowance for official vehicles by 50 percent for the next two months, while 60 percent of government vehicles would remain unused. Ambulances and public transport buses will not be affected. The federal cabinet will forgo its salaries for two months, while parliamentarians’ salaries will be reduced by 25 percent. Senior BS-20 officials earning more than Rs300,000 will contribute two days of their salary for public welfare. Government departments have also been directed to cut expenses by 20 percent, and the purchase of new vehicles, furniture, and air conditioners has been banned. Foreign trips by ministers and officials will be restricted to essential visits, while meetings will be conducted online to save fuel. Official dinners and iftar gatherings have also been banned, and seminars will be held in government buildings instead of hotels. The government also introduced measures for the public sector, including a four-day workweek and work-from-home arrangements for 50 percent of staff, except for essential services. Banks will continue normal operations. Schools will observe two weekly holidays and a two-week break starting at the end of the week, while universities will shift to online classes. The prime minister warned hoarders and profiteers against exploiting the situation and said strict action would be taken against them. He said global oil prices had risen above $100 per barrel due to the conflict and noted that Pakistan relies heavily on energy imports from Gulf countries. While acknowledging that recent fuel price increases were difficult, he said the government tried to limit the burden on citizens. PM Shehbaz added that Pakistan was pursuing diplomatic efforts to ease tensions and reaffirmed support for regional allies. He also said the country’s armed forces, under the leadership of Asim Munir, were addressing security challenges along the western border. 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...