Pakistan announces fuel, travel, and salary cuts for govt officials

ISLAMABAD: Pakistan has announced strict austerity measures amid the ongoing war in the Middle East and rising global oil prices.

The measures include a ban on the purchase of new goods and government vehicles, suspension of official trips and state banquets, a 50 per cent cut in fuel supply for government vehicles, voluntary two-month salary and allowance forego by ministers and advisers, and a two-day salary reduction for senior government officials.

The national austerity policy was approved at a meeting chaired by Prime Minister Shehbaz Sharif. Chief ministers from all four provinces, the chief minister of Gilgit-Baltistan, and the prime minister of Azad Jammu and Kashmir also attended.

The austerity steps will be uniformly applied across all ministries, departments, autonomous bodies, the judiciary and parliament.

Ban on new purchases

The government has imposed a complete ban on the purchase of new durable goods until June 2026.

IT purchases will only be allowed after review by the National IT Board (NITB) and approval from the scrutiny committee.

Ban on official travel

All foreign official trips by cabinet members, parliamentarians, and government officials have been suspended.

The ban applies to all federal and provincial officials. No overseas travel will be allowed except for essential official missions, and all officials traveling abroad must do so in economy class. The restriction applies to trips funded by government or donor resources.

Fuel reduction for government vehicles

Fuel supply for all government vehicles will be reduced by 50 per cent for the next two months.

Operational vehicles such as buses, ambulances, and motorcycles have been exempted from this. The cut is expected to save around Rs4.5 billion at the federal level.

Grounding of govt vehicles and ban on new vehicles

Sixty per cent of federal and provincial government vehicles will be grounded for two months. The purchase of any new vehicles has completely been prohibited until June 2026.

Right-sizing programme

The government will continue its right-sizing programme, with real financial savings targets likely to be set in the upcoming budget.

Teleconferencing and virtual meetings will be promoted to reduce expenses. Official banquets are suspended, with exceptions only for foreign delegations.

All government seminars, trainings, and conferences will require prior approval from a special committee, which will evaluate the necessity and priority of the events. Government auditoriums and official facilities must be used for such events.

Salary reductions

All federal and provincial ministers, advisers, and special assistants will voluntarily forego two months of salaries and allowances.

Senior officials in Grade 20 and above with salaries exceeding Rs300,000 per month will have a two-day salary cut.

Non-development budget cuts

All federal and provincial departments will see a 20 per cent cut in non-development spending for the fourth quarter of the fiscal year. The reductions are expected to save 22 billion rupees at the federal level.