Pak approves up to 30% salary cuts in State firms

Pakistan’s Prime Minister Shehbaz Sharif on Saturday approved salary deductions ranging from 5 to 30 per cent for employees of state-owned enterprises and autonomous institutions as part of a broader austerity drive.

The new measures were cleared during a review meeting convened to evaluate a slew of austerity and savings plans announced on Monday to tackle the economic fallout of the fuel crisis triggered by the ongoing US-Israel-Iran conflict. According to a statement issued by the Prime Minister’s Office (PMO), Sharif chaired a high-level meeting to review the impact of fuel price fluctuations and the implementation of Government austerity measures.

“It was decided in the meeting that, like Government employees, there will be a 5-30 per cent cut in the salaries of employees of state-owned enterprises and autonomous institutions under Government patronage,” the statement said. It added that the savings generated through the austerity measures would be used “only for public relief”.

Participants were also informed that the audit would oversee a 50 per cent reduction in fuel allocations for Government vehicles, while 60 per cent of these vehicles would be taken off the roads.