KARACHI: Employees of state-owned enterprises (SOEs) and autonomous institutions under government patronage will see their salaries cut by five to 30 per cent under the government’s austerity measures, with the savings to be used for public relief, it was decided on Saturday.

The move adds to a host of austerity measures announced by Prime Minister Shehbaz Sharif on Monday in view of the global oil crisis triggered by the US-Israel war on Iran, which has pushed up local fuel prices.

On Saturday, PM Shehbaz chaired a meeting to review the impact of petroleum product prices and the implementation of government austerity measures in light of the ongoing situation in the Middle East, according to a press release issued by the Prime Minister’s Office (PMO).

“It was decided in the meeting that, like government employees, there will be a 5-30pc cut in the salaries of employees of state-owned enterprises and autonomous institutions under government patronage,” the statement said.

It added that the funds saved as a result of all austerity measures would be used “only for public relief”.

The meeting was attended by Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Information Minister Attaullah Tarar, Minister of State for Finance Bilal Azhar Kayani and other senior officials. Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial was also present.

While reviewing previously announced initiatives, the meeting decided that the four-day workweek would not apply to law enforcement agencies (LEAs) and the FBR, who would continue their duties as usual.

It reviewed earlier decisions and reiterated that a third-party audit would be conducted within the next two months regarding the move to ground 60pc of government vehicles and cut fuel allocations for government vehicles across departments by 50pc.

“The meeting was also briefed on the implementation of the government’s complete ban on the purchase of new vehicles and the ban on all other government purchases,” the PMO statement added.

In addition, the next two months’ salaries of cabinet members, ministers, advisers and special assistants to the prime minister (SAPMs) will be set aside as savings for public welfare. The meeting was also informed of the implementation of the decision to completely ban foreign visits by ministers, advisers and SAPMs, with teleconferencing and online meetings prioritised.

“The complete ban on foreign visits of government officers, ministers, ministers of state and special assistants will remain in place,” PM Shehbaz was quoted as saying.

The meeting also decided that corporations and institutions with government representatives on their boards would not charge fees for their participation, with such amounts to be included in the savings. “The premier also directed all Pakistani embassies around the world to celebrate Pakistan Day on March 23 with utmost simplicity,” the statement added.

‘Petroleum product stocks at comfortable levels’

Meanwhile, a meeting of the committee formed by PM Shehbaz to monitor petrol prices was held virtually. According to the Ministry of Finance, the virtual meeting was chaired by Finance Minister Aurangzeb.

“The committee undertook a comprehensive review of petroleum product stock positions across the country and was briefed on the current national inventory of crude oil and refined petroleum products, ongoing import arrangements, and supply chain logistics,” it said.

It added that the participants were also informed about cargoes currently en route as well as additional shipments being arranged to strengthen national reserves.

“The committee noted with satisfaction that petroleum product stocks remain at comfortable levels and that supply chains are functioning smoothly, with adequate arrangements in place to ensure continuity of supply in the coming weeks,” the ministry said.

It said the committee also reviewed recent developments in global crude and refined petroleum markets, which had experienced “heightened volatility in recent days due to geopolitical developments in the region”.

“Members examined international price trends, benchmark crude movements, and refined product market dynamics, and discussed possible external scenarios and their potential implications for Pakistan’s energy sector and broader economy,” the ministry said.

“It was noted that the government continues to closely monitor international market developments and is undertaking continuous scenario planning to safeguard domestic energy security and economic stability,” it added.

The meeting also reviewed operational arran­ge­ments relating to crude imports, refinery operations and maritime logistics. Relevant authorities briefed the committee on measures being taken to facilitate cargo movements, maintain optimal refinery throughput and ensure the uninterrupted functioning of the petroleum supply chain.

“The committee emphasised the importance of maintaining close coordination among refineries, oil marketing companies and relevant government institutions to sustain smooth product flows and nationwide fuel availability,” the ministry said.

Members were also briefed on the supply outlook for diesel, petrol, aviation fuels and LPG. The committee noted that current supply levels and planned imports were expected to adequately support domestic demand in the coming weeks.

It was observed that relevant authorities remained actively engaged in monitoring stock levels, shipment schedules and distribution networks to ensure uninterrupted market supply, it added.

In addition to supply-side measures, the committee also reviewed a range of targeted fuel conservation and demand management options aimed at moderating import requirements during periods of international price volatility.

“Various potential measures relating to efficient fuel consumption and public sector conservation initiatives were discussed, with the understanding that responsible consumption can contribute to reducing pressure on imports while supporting broader economic stability,” it said.

Published in Dawn, March 15th, 2026