Pakistan Government Approves Pay Cuts for State-Owned Enterprises and Autonomous Institutions as Part of Austerity Drive

The Shehbaz Sharif-led Pakistan government on Saturday approved pay cuts ranging from five to 30 per cent for employees of state-owned enterprises (SOEs) and autonomous institutions. The move comes as part of a wider austerity drive. According to a statement issued by the Prime Minister's Office, a high-level meeting was held to review fuel price fluctuations and government savings measures, chaired by PM Shehbaz Sharif. The meeting decided that like government employees, the salaries of employees of state-owned enterprises and autonomous institutions run under the patronage of the government will also be cut by 5 to 30 per cent. The statement said that the savings from these measures will only be used to provide relief to the public. The meeting was also informed that a 50 per cent cut in fuel allocation for government vehicles will be monitored through a third-party audit, while 60 per cent of government vehicles will be taken off the roads in the next two months. According to the statement, the government's savings on the purchase of new vehicles and restrictions on the salaries of other cabinet members will also be kept in abeyance for two months.