The Islamabad High Court has issued notices to the federal government and relevant authorities in a case challenging salary cuts under the prime minister’s austerity policy. The case has raised legal questions about the scope of government directives.
The IHC heard the petition on Monday. The hearing was conducted by Justice Khadim Hussain Soomro. The petition was filed by the state-owned National Grid Company.
The court directed the Secretary Cabinet Division, the Federation, and the Ministry of Law and Justice to submit their responses. The IHC sought detailed explanations regarding the legality of the salary deductions.
During the hearing, Barrister Umar Ijaz Gilani appeared on behalf of the petitioner. He argued that the salary cuts were imposed through a notification issued on March 14 by the Cabinet Division.
He stated that the measure was part of a broader austerity drive. This drive was reportedly introduced in the context of international tensions involving the US and Iran.
The lawyer further argued that the prime minister’s directives apply only to government departments. He said they should not extend to government-owned companies operating under separate legal frameworks.
The counsel explained that the petitioner company is registered under the Companies Act. He said it operates independently to reduce direct government interference in its daily affairs.
According to the argument presented in the IHC, applying salary cuts to such companies is legally questionable. He maintained that independent entities should not be bound by administrative instructions meant for government departments.
After hearing the initial arguments, the IHC issued notices to all concerned parties. The court asked them to submit detailed responses in the case.
The proceedings were then adjourned to a later date. The court will review the replies before moving forward with the matter.
Officials from the government side are expected to present their stance in the next hearing. The case will determine whether austerity-related salary cuts can be applied to state-owned companies.
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The IHC will continue hearings after receiving responses from all relevant authorities. The outcome is expected to clarify the legal limits of executive financial directives.
