ISLAMABAD – Pakistani government announced cutting salaries of top officials besides banning all official foreign trips for the next two months as part of its aggressive fuel-saving and austerity policy.
The Cabinet has also taken the dramatic step of slashing salaries of top officials across government corporations, autonomous bodies, regulatory authorities, and state-owned enterprises. According to the official notification, these deductions will be deposited directly into the Prime Minister’s Austerity Fund 2026.
The decision comes following recommendations from the monitoring committee, in line with the Cabinet Division’s directives issued on 9th and 10th March 2026, and has been personally approved by the Prime Minister.
Salary Cuts
The notification lays out steep salary deductions:
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Officials earning Rs300,000 – 1,000,000 per month will lose 5% of their salary.
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Officials Rs 1,000,001 – 2,000,000 will face a 15% cut.
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Officials earning Rs2,000,001 – 3,000,000 will see a 25% reduction.
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Officials earning more than Rs3,000,000 will have 30% of their salary deducted for the next two months.
Adding to the blow, all fees received by government-nominated individuals for attending board meetings of government or private companies will also be 100% redirected to the Prime Minister’s Austerity Fund during this period.
Diplomatic Missions Also Affected
The Ministry of Foreign Affairs has been ordered to scale down overseas events. On 23rd March 2026, Pakistani embassies abroad will hold simple flag-hoisting ceremonies instead of lavish events. Additionally, overseas mission budgets for the fourth quarter will see a 20% reduction, coupled with a two-day salary cut for officials.
This sweeping austerity comes under majojr plan to tighten expenditure and promote fiscal responsibility.
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