ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday announced that funds saved through the government’s austerity measures will be redirected to provide relief to the public.
The announcement came after a meeting in Islamabad chaired by the prime minister to review the impact of the regional situation on petroleum prices and the implementation of cost-cutting measures across government institutions.
Earlier this week, the government introduced a series of energy conservation and austerity steps to address rising fuel costs and potential shortages. The prime minister had also announced that petroleum prices would not be increased further after a recent Rs55 per litre hike, aiming to ease public concerns while absorbing part of the price pressure.
Officials said the meeting examined policy options to maintain stability in fuel prices and assessed progress on the austerity plan. According to an official statement, all savings generated through these measures will be directed towards public welfare initiatives.
Savings pool
Under the plan, salaries of employees in state-owned enterprises and autonomous bodies supported by the government will be reduced gradually by 5% to 30%, similar to cuts already implemented for government staff.
Government representatives serving on boards of corporations will also forgo meeting fees, which will instead contribute to the savings pool. Pakistani embassies abroad have been directed to mark the upcoming 23 March national day celebrations in a simple manner.
Additional measures include a 50% reduction in fuel allocations for government vehicles over the next two months and grounding 60% of official vehicles, with third-party audits to monitor implementation. The purchase of new government vehicles has also been banned.
Ministers, advisers and special assistants will contribute their salaries to the relief fund for the next two months, while foreign visits by government officials remain restricted.
