In a significant move aimed at bolstering public relief amid escalating economic pressures, the government has announced a substantial salary cut for employees of State-Owned Enterprises (SOEs) and autonomous institutions under its patronage. On Saturday, a meeting chaired by Prime Minister Shehbaz Sharif decided that these employees would face a five to 30 per cent reduction in their salaries, mirroring austerity measures already in place for government employees.
This decision is part of a broader set of austerity measures unveiled by the Prime Minister in response to the severe global oil crisis. The crisis, intensified by the ongoing US-Israel conflict with Iran and subsequent disruptions to global energy markets, has led to a dramatic surge in local fuel prices, profoundly impacting Pakistan’s economy.
Austerity for Public Welfare
According to a press release from the Prime Minister’s Office (PMO), the funds saved through these stringent measures will be “only for public relief.” This commitment underscores the government’s dedication to alleviating the burden on ordinary citizens during these challenging times.
The meeting, attended by key federal ministers including Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik, also reviewed previously announced initiatives and introduced new directives:
- Salary Contributions: In addition to SOE cuts, cabinet members, ministers, advisers, and special assistants will dedicate their next two months’ salaries as savings for public welfare.
- Vehicle & Fuel Cuts: The government reiterated its decision to ground 60 per cent of government vehicles and slash 50 per cent of the fuel allotted to government departments. A third-party audit of these measures will be conducted within the next two months to ensure compliance and effectiveness.
- Purchase Bans: A complete ban remains on the purchase of new vehicles and all other non-essential government purchases.
- Travel Restrictions: The ban on foreign visits for ministers, advisers, and special assistants will continue, with a strong emphasis on utilising teleconferencing and online meetings to save costs. Similarly, government officers are also barred from foreign travel.
- Board Fees Waived: Government representatives on the boards of corporations and other institutions will no longer charge a fee for their participation, with these savings contributing to the overall austerity drive.
- Pakistan Day Simplicity: All Pakistani embassies globally have been directed to celebrate Pakistan Day (March 23) with utmost simplicity.
Exemptions and Monitoring
While the four-day work week was introduced as an austerity measure, the meeting clarified that it would not be applicable to law enforcement agencies (LEAs) and the Federal Board of Revenue (FBR), ensuring these critical sectors continue their operations without disruption. Furthermore, the Prime Minister has instructed concerned secretaries to implement and monitor all austerity orders daily, submitting regular reports to a review committee.
The Economic Imperative
The urgency of these measures is highlighted by the severe economic ripple effects of the global situation. The US-Israel conflict with Iran has significantly disrupted the global oil supply chain, causing local fuel prices to skyrocket. Last week, the government had already announced a Rs55 per litre increase in petrol and high-speed diesel prices. However, demonstrating a commitment to public welfare, Prime Minister Shehbaz Sharif decided to keep fuel prices unchanged on Friday, despite an uptick in international oil markets, deferring the burden on the public for now.
These austerity measures reflect the government’s determined efforts to navigate a challenging economic landscape, prioritising public relief and sustainable fiscal management.
Source: Original Article
