The federal cabinet has decided to forgo two months’ salaries as part of a nationwide austerity drive aimed at conserving resources and ensuring economic stability amid the ongoing conflict in the Middle East.
The decision was taken during a consultative meeting on austerity measures chaired by Shehbaz Sharif.
Economic Measures Discussed
During the meeting, Muhammad Aurangzeb briefed participants on the need to reduce petroleum consumption and adopt cost-cutting measures at the government level in light of the evolving global situation.
Senior members of the federal cabinet attended the meeting, including:
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Ishaq Dar
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Ahsan Iqbal
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Owais Leghari
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Ali Pervaiz Malik
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Attaullah Tarar
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Musadik Masood Malik
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Haroon Akhtar Khan
Representatives from all four provinces and officials from key institutions also attended the meeting, while provincial chief ministers and the Prime Minister of Azad Kashmir joined via video link.
Focus on Public Relief
Participants also discussed proposals to provide relief for deserving and low-income citizens, while ensuring government spending remains disciplined.
Officials warned that the evolving conflict in the Gulf region could affect Pakistan’s economy through:
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potential energy supply disruptions
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fluctuations in global fuel prices
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broader economic uncertainty
PM Directs Simplicity in Government Spending
Addressing the meeting, Prime Minister Shehbaz Sharif emphasized the need for simplicity and austerity in government operations during the current challenging period.
He directed federal ministers, elected representatives and senior officials to play an active role in supporting public relief measures and conserving national resources.
However, the government decided that austerity and energy-saving measures will not apply to the industrial and agricultural sectors, in order to protect economic productivity and maintain exports and food security.
