PM orders strict implementation of austerity measures to provide public relief

• Premier Shehbaz tasks secretaries with daily monitoring and reporting on government cost-saving initiatives

• Says 50% reduction in fuel for official vehicles, 60% of vehicles grounded to be subjected third-party audit

• Says ban on foreign visits by ministers, advisers and officers to remain in place, with embassies worldwide to observe Pakistan Day with simplicity

• Suspends purchase of new government vehicles and non-essential procurements to save funds

 ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Saturday directed that relevant secretaries personally ensure the implementation and monitoring of the government’s announced austerity and simplicity measures, with daily progress reports to be submitted to the review committee.

The prime minister chaired a high-level meeting to review the impact of the current regional situation on petroleum product prices and to assess the implementation of the government’s cost-saving initiatives.

وزیراعظم محمد شہباز شریف کی زیرِ صدارت خطے میں صورتحال کے پیش نظر پیٹرولیم مصنوعات کی قیمتوں پر اثر اور حکومتی بچت کے اقدامات کے نفاذ پر جائزہ اجلاس

اجلاس میں پیٹرولیم مصنوعات کی قیمتوں میں استحکام کیلئے پالیسی اقدامات اور حکومت کی جانب سے بچت کے اقدامات کے نفاذ پر پیش رفت اور… pic.twitter.com/s3XrmkPLLe

— Government of Pakistan (@GovtofPakistan) March 14, 2026

During the meeting, policy measures aimed at stabilizing petroleum prices and the progress and impact of the austerity measures were discussed. Officials were informed that the funds saved through these initiatives would be fully utilized to provide relief to the public under the prevailing situation. “Savings generated through austerity measures will solely go toward public relief,” the PM Office Media Wing said in a press release.

It was decided that, following the earlier government employees’ mechanism, salaries of employees in state-owned enterprises and autonomous institutions under government patronage would be deducted in stages ranging from 5 to 30 percent, with the saved amounts directed toward public relief.

Additionally, in corporations and other institutions where government representatives serve on boards, board meeting fees would be waived, and the amounts added to the savings pool.

The meeting was attended by Ministers Attaullah Tarar, Muhammad Aurangzeb, Ali Pervaiz Malik, Minister of State Bilal Azhar Kayani, the Chairman of the Federal Board of Revenue, and other senior officials.

The prime minister further directed that all Pakistani embassies worldwide observe Pakistan Day (March 23) with simplicity.

It was also clarified that the four-day workweek would not apply to law-enforcement agencies or the Federal Board of Revenue, which would continue their regular schedules.

For the next two months, a 50 percent reduction would be implemented in fuel allocations for official vehicles across all departments, while grounding 60 percent of official vehicles would be subject to verification through a third-party audit.

The meeting was briefed on a complete ban on the purchase of new government vehicles and suspension of all other non-essential government procurements.

For the next two months, salaries of cabinet members, ministers, advisers, and special assistants would also be directed toward public welfare. A complete ban on foreign visits for ministers, advisers, and special assistants would remain in force, with teleconferencing and online meetings preferred.

The prime minister reiterated that the ban on foreign visits for government officers, federal ministers, ministers of state, and special assistants will continue, underscoring the government’s commitment to austerity and public relief.