The Pakistani government has announced a series of austerity measures, including salary reductions for senior officials and a temporary ban on official foreign travel for the next two months. The steps are part of a broader effort to conserve fuel and reduce public expenditure amid economic challenges.
According to an official notification, the federal cabinet has approved salary cuts for high-ranking officials working in government corporations, autonomous organizations, regulatory authorities, and state-owned enterprises. The amount deducted from these salaries will be transferred directly to the Prime Minister’s Austerity Fund 2026.
The move follows recommendations from a monitoring committee and is in line with directives issued by the Cabinet Division on March 9 and 10, 2026. The plan has also received the personal approval of the Prime Minister as part of the government’s wider cost-cutting strategy.
Under the new policy, officials earning between Rs300,000 and Rs1,000,000 per month will face a 5 percent salary reduction. Those earning Rs1,000,001 to Rs2,000,000 will see 15 percent of their salary deducted, while officials with salaries between Rs2,000,001 and Rs3,000,000 will experience a 25 percent cut. Meanwhile, individuals earning more than Rs3,000,000 per month will have 30 percent of their salary deducted for the next two months.
In addition to these reductions, any fees received by government-nominated representatives for attending board meetings of government or private companies will be fully redirected to the Prime Minister’s Austerity Fund during this period.
The austerity drive also extends to Pakistan’s diplomatic missions abroad. The Ministry of Foreign Affairs has been instructed to scale down overseas events, including simplifying the March 23, 2026 celebrations at embassies to basic flag-hoisting ceremonies instead of large gatherings. Furthermore, overseas mission budgets for the fourth quarter will be reduced by 20 percent, and officials will face an additional two-day salary deduction.
These measures are part of the government’s broader initiative to control spending, conserve resources, and strengthen fiscal discipline.
