The Cabinet Division has issued an official notification introducing austerity and fuel-saving measures across government institutions, including temporary salary cuts for senior officials.
Under the new policy, salaries of senior management in government departments and regulatory authorities will be reduced for two months under a slab-based deduction system. Officials earning between Rs300,000 and Rs1 million will face a five per cent cut, while those receiving between Rs1 million and Rs2 million will see a 15 per cent reduction. Salaries between Rs2 million and Rs3 million will be reduced by 25 per cent, and those earning above Rs3 million will face a 30 per cent cut.
The notification also orders a 100 per cent deduction of fees for government representatives serving on the boards of public and private companies. All deducted funds will be deposited into the Prime Minister Austerity Fund 2026.
The Ministry of Foreign Affairs has been directed to mark Pakistan Day with a simple flag-hoisting ceremony instead of traditional receptions. In addition, budgets for foreign missions will be reduced by 20 per cent, while officers will face a two-day salary deduction.
A complete ban has also been imposed on foreign visits for the next two months. Under the directive, ambassadors will represent Pakistan at international events instead of officials travelling from the country.
However, operational agencies such as the Federal Board of Revenue (FBR), Customs and Inland Revenue operations will be exempt from work-from-home rules and restrictions on official vehicles. Law enforcement agencies will also not be subject to the four-day work week policy.
For operational security institutions, fuel usage will be reduced by 50 per cent and 60 per cent of government vehicles will remain grounded. The Intelligence Bureau will conduct a comprehensive audit of fuel consumption and vehicle usage, with a report to be submitted to the prime minister.
All federal and provincial departments have also been directed to submit weekly performance reports through an IT portal. Meanwhile, a sub-committee headed by the finance secretary has been established to oversee the transfer of savings to the austerity fund.
