What is govt upto?

2026-03-15 - 23:14

While chairing a high-level meeting, Prime Minister Shehbaz Sharif approved salary deductions ranging from 5% to 30% for employees of state-owned enterprises and autonomous institutions as part of an austerity drive aimed at mitigating the economic fallout from the ongoing Middle East war. The decision has apparently been presented as a necessary step to reduce government expenditure. However, falling the axe on salaried class that survives on fixed and limited incomes, just at the beginning of crisis is both premature and unfair. This segment of society is already overburdened with high taxes and unlike many other sectors, the employees largely pay their taxes honestly and consistently. Asking them to shoulder additional financial sacrifice at the very outset raises serious questions about fairness and policy priorities. There is no denying that these are challenging times. With international oil prices fluctuating and economic uncertainty looming, the government is understandably exploring different avenues to reduce expenditures and promote savings. However, austerity policies must be designed with great care and sensitivity. The recent increase of Rs55 in petroleum product prices has already placed a heavy burden on the public. The impact has been immediate and visible, particularly in the form of higher transport fares and the cascading rise in prices of essential items. For the common man who are already struggling with high costs of electricity and gas, these developments have further tightened household budgets. In such circumstances, the decision to reduce salaries without specifying duration of the cuts is understandably unsettling for employees. The austerity measures must be implemented in a manner that protect those who are most vulnerable within the system. The axe should not fall on low-rank employees who have limited financial buffers, nor should it apply to departments that are still awaiting salary increases announced in last year’s budget, as well as house-hiring increase promised in December. For instance, the attached departments of Ministry of Information and Broadcasting have yet to receive these benefits. Before any salary reductions are considered, government must first ensure that previously announced increases are implemented without discrimination.Furthermore, it is widely known that some government departments enjoy comparatively higher salaries and multiple allowances, effectively giving their employees double or enhanced financial benefits compared to those working in other departments. If austerity is truly necessary, such departments should logically be the first to face reductions. Applying uniform cuts across all departments without addressing these disparities risks deepening feelings of injustice among employees who are already earning far less than their counterparts elsewhere in the system. A more balanced approach would be to limit salary reductions to top tier of the bureaucracy, the officers in BPS-20 and above. These senior officials draw substantial salaries and enjoy numerous allowances and benefits. A temporary reduction in their compensation would not significantly affect their standard of living, yet it would demonstrate that those at the top are willing to share the burden during difficult times. At the same time, authorities must clearly show that savings generated from austerity measures will be used for public relief. One practical step would be to ensure stability in petroleum prices. In the current environment, government should consider reducing petroleum levy if international prices rise, thereby cushioning the impact on consumers. The government must tread carefully, ensuring that austerity does not translate into additional hardship for ordinary people who are already struggling with inflation and soaring utility bills. In times of crisis, shared sacrifice is essentialbut it must begin from the top and be implemented with transparency and a clear commitment to public welfare.