Salary Cuts To Trip Ban, How Middle-East Crisis Has Pushed Pakistan Into Austerity Drive | Exclusive
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Last Updated:March 15, 2026, 17:27 IST
From 30% salary cut to ban on international trips by officials, News18 accesses exclusive documents on the measures in place
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Reeling under the effect of the ongoing US-Israel-Iran war, Pakistan has imposed an austerity plan to protect its economy.
From 30% salary cut to ban on international trips by officials, News18 accesses exclusive documents on the measures in place.
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A look at the measures:
1. Petroleum provision for official vehicles reduced by 50% for two months.
2. 60% of official vehicles in federal and provincial government departments remain off the roads during this period.
3. Federal & provincial cabinet ministers, ministers of state, advisers and special assistants to the prime minister forego their salaries and allowances for two months.
4. Members of the federal and provincial legislatures take a 25% voluntary cut in salaries and allowances for two months. Government officers in Grade-20 and above earning over Rs300,000 per month voluntarily give up two days’ salary, except those in the health and education sectors.
5. Federal and provincial government departments reduce non-essential expenditure by 20% during the final quarter of the current fiscal year.
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6. The existing ban on the purchase of new government vehicles continues until June 2026, with no exemptions allowed.
7. A complete ban on purchasing new durable goods for government offices remains in place, with limited exceptions for IT procurement after scrutiny.
8. Official foreign visits by ministers, parliamentarians, and government officials banned, except for obligatory trips.
9. All officials travelling abroad on official duty travel in economy class only.
10. Physical meetings in government departments replaced with virtual meetings to reduce travel and accommodation costs.
11. Official dinners not hosted, except in the case of visiting foreign delegations.
12. Government seminars, training sessions and conferences require prior scrutiny and approval before being organised.
13. Up to 50% of government employees work from home on alternate days, except those in essential services.
14. Government offices operate on a four-day workweek, though the banking sector and essential services are exempt.
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15. The private sector advised, but not mandated, to adopt similar measures such as work-from-home arrangements and a four-day workweek where possible.
16. All schools observe spring holidays from March 16 to March 31, 2026, though scheduled examinations continue.
17. Colleges and universities shift to 100% online classes during this period.
18. Reduced speed limits apply on roads, with motorways set at 90–100 km/h and highways at 65–80 km/h.
19. A limit of 200 guests imposed at wedding functions, where only one dish served.
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