The government of Pakistan has announced salary reductions for SOE employees and staff of autonomous institutions, ranging from 5 to 30 percent. The savings will be used for public relief amid rising fuel prices triggered by the ongoing Middle East crisis.
Prime Minister Shehbaz Sharif chaired a meeting on Saturday to review austerity measures. The PMO stated that cuts for SOE employees will mirror those already imposed on government staff. Officials confirmed that funds saved will go solely toward supporting public welfare initiatives.
The meeting included Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Information Minister Attaullah Tarar, and FBR Chairman Rashid Mahmood Langrial. Discussions focused on fuel price management, government expenditure reduction, and the implementation of earlier austerity measures, including the grounding of 60% of government vehicles and cutting official fuel allocations by 50%.
The four-day workweek will not apply to law enforcement agencies or the FBR, which will continue regular schedules. Cabinet members, ministers, advisers, and special assistants will have their next two months’ salaries redirected toward public relief, while foreign visits remain banned. Government institutions will also not charge participation fees for board representatives, adding to savings.
The austerity measures come after the US-Israel war in the Middle East caused global oil price spikes. Petrol and diesel prices were raised by Rs55 per litre last week, though PM Shehbaz decided to hold prices steady under the weekly pricing mechanism.
A committee led by Finance Minister Aurangzeb reviewed petroleum stocks, import arrangements, and supply chains. Officials confirmed that domestic fuel reserves are sufficient and supply chains remain operational. The committee also discussed demand management and conservation measures to reduce import pressures during volatile global markets.
Authorities said ongoing monitoring of stock levels, shipments, and refinery operations will continue to ensure uninterrupted supply. The government emphasized close coordination among refineries, oil marketing companies, and relevant agencies to sustain nationwide fuel availability.
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In addition, officials highlighted plans to develop a digital dashboard to monitor petroleum inventories and retail supply in real time. The government reaffirmed its commitment to maintaining energy security, market stability, and public welfare while implementing austerity measures affecting SOE employees.
