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Federal Cabinet to Forego Two Months’ Salary Under Austerity Plan
PM Shehbaz Sharif chairs meeting on national austerity policy. Federal cabinet decides to give up two months’ salary and adopt strict cost-cutting measures amid regional and global challenges.
ND
by News Desk
2026-03-09
Federal Cabinet to Forego Two Months’ Salary Under Austerity Plan

A high-level meeting on Pakistan’s national austerity policy was held on Monday under the chairmanship of Prime Minister Shehbaz Sharif to review economic measures in light of the evolving regional and global situation.

According to sources, members of the federal cabinet decided during the meeting to forego two months’ salary as part of broader austerity efforts aimed at reducing government expenditures and promoting financial discipline.

The meeting discussed several proposals related to cost-cutting and efficient governance. Based on various recommendations, a final action plan focused on austerity and simplicity was prepared. Ministers and government officials were advised to adopt a policy of simplicity, frugality and responsible use of public resources.

Sources said the government plans to implement strict measures to conserve state resources while ensuring that economic activity continues smoothly.

However, it was decided that austerity measures will not be applied to the industrial and agricultural sectors, in order to protect economic productivity and ensure stability in key sectors of the economy.

Participants also agreed on the importance of continuous monitoring of supply and demand to ensure efficient management of resources and better energy utilisation.

During the meeting, Prime Minister Shehbaz Sharif emphasised the importance of maintaining government operations without disruption. He directed authorities to ensure uninterrupted digital connectivity and internet access for employees working remotely, stressing that work-from-home arrangements should function smoothly.

The meeting was attended by senior members of the federal cabinet, while the chief ministers of all four provinces joined through a video link. The Prime Minister of Azad Kashmir also participated in the discussion virtually.

Officials said the austerity measures are part of the government’s broader strategy to manage economic challenges while maintaining administrative efficiency and public service delivery.
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ShehbazSharif

PakistanEconomy

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