Federal cabinet decides to forgo two months’ salaries under austerity drive

The federal cabinet has decided to forgo two months’ salaries as part of a broader austerity drive aimed at conserving resources and maintaining economic stability amid the ongoing war in the Middle East, 24NewsHD TV reported on Monday.

The decision was taken during a consultative meeting on austerity measures chaired by the Prime Minister Shehbaz Sharif.

During the session, Finance Minister Muhammad Aurangzeb briefed participants on the need to conserve petroleum products and adopt cost-cutting measures at the government level in light of the prevailing global situation.

The meeting was attended by senior members of the federal cabinet, including Ishaq Dar, Muhammad Aurangzeb, Ahsan Iqbal, Owais Leghari, Ali Pervaiz Malik, Attaullah Tarar, Musadik Masood Malik and Haroon Akhtar.

Representatives from all four provinces and senior officials from relevant institutions were also present, while the chief ministers of the provinces and the Prime Minister of Azad Kashmir joined the meeting via video link.

According to sources, the participants also discussed proposals aimed at providing relief to deserving and low-income citizens.

A final course of action was outlined based on recommendations centred on austerity and simplicity in government spending.

The meeting also reviewed the potential economic impact of the ongoing conflict in the Gulf region and assessed measures to keep Pakistan’s economy stable.

During the briefing, officials warned that the evolving regional and global situation could have repercussions for the country’s economy.

Participants were informed that challenges may arise regarding energy supply and fluctuations in prices in international markets.

In this context, the meeting declared that timely measures would be essential to safeguard economic stability.

Addressing the meeting, the Prime Minister said the government would strive to provide maximum relief to the public during the challenging period.

He issued special directives to the federal cabinet, elected representatives and senior government officials.

However, it was decided that austerity and energy-saving directives would not be applied to the industrial and agricultural sectors in order to avoid disrupting economic productivity.