Pakistan's Prime Minister Shehbaz Sharif on Saturday approved pay cuts ranging from 5 to 30 per cent for employees working for state-owned enterprises and autonomous institutions. This move comes as a part of a wider austerity drive to address the financial crunch amid the ongoing fuel crisis.
The announcement comes after a high-level meeting was conducted by Sharif to monitor austerity and savings measures. The concerning decision comes after fuel prices have risen to sky-high rates amid the ongoing US-Israel-Iran war.
The Pakistani Prime Minister claimed that the meeting assessed the impact of fluctuations in oil prices and steps taken by the authorities to balance the expenditure. According to the issued statement, "It was decided in the meeting, like government employees, there will be a 5-30 per cent reduction in the salaries of employees of state-owned enterprises and autonomous institutions under government patronage."
The meeting also confirmed that a third-party audit would supervise a 50 per cent reduction in fuel allocations for government vehicles. On the other hand, 60 per cent of these vehicles will be taken off the roads over the next two months. The government also said that representatives serving on the boards of corporations and institutions will no longer receive any participation fees; thus, the money will be saved.
The directives also underlined that there will be a complete ban of the purchase of new vehicles and restrictions on all government purchases. The coming two months' salaries of cabinet ministers, members, advisors, and special assistants will also be used as a part of savings for public welfare, the statement added.
The statement issued mentioned a complete ban on foreign visits of government officers, ministers of state, and special assistants will remain in place.
Pakistan is already started suffering for the sudden rise in petroleum prices. Prices of the fuel were increased to Rs 55 per litre, last Friday.