Islamabad, 10 March 2026(News Desk): Prime Minister Muhammad Shehbaz Sharif has announced a 14-point austerity plan aimed at stabilizing Pakistan’s economy in light of the prevailing war-like situation in the region, including Iran, the Middle East and the Gulf. The measures focus on austerity, public relief, simplicity in governance and energy conservation while reducing government expenditures and limiting privileges of the elite. Addressing the nation on Monday, the Prime Minister briefed the public on the evolving regional situation and outlined key government decisions. Under the plan, fuel consumption for official vehicles will be reduced by 50 percent for two months, while 60 percent of government vehicles will remain unused during this period. Federal cabinet members, ministers, advisers and special assistants will not draw salaries for the next two months, and members of parliament will face a 25 percent reduction in their salaries.
The Prime Minister also announced that two days’ salary will be deducted from officers of Grade-20 and above whose monthly salaries exceed Rs. 300,000, while government departments will reduce their expenditures by 20 percent. To further control spending, foreign visits by the Prime Minister, governors, chief ministers, federal and provincial ministers, advisers, special assistants and government officials will remain suspended, except when unavoidable in the national interest. Government events such as seminars and conferences will be held at official venues instead of hotels to minimize costs. Additional measures include 50 percent work-from-home arrangements for government staff and a four-day work week for government offices, though the additional weekly holiday will not apply to banks. All schools will observe two weeks of holidays starting from the end of the current week, while higher education institutions will immediately shift to online classes.
The government has also banned official dinners and iftar parties and imposed a complete ban on the purchase of furniture, air conditioners and other equipment for government offices. In his address, the Prime Minister said he was speaking to the nation about the serious and dangerous situation facing the region, noting that Iran, the Middle East and surrounding areas are currently experiencing intense conflict. He expressed deep concern over the loss of innocent lives, displacement of families and threats to regional peace. He emphasized that attacks on Gulf countries pose serious risks to regional stability, adding that Pakistan is making every possible effort to resolve tensions through diplomacy and prudent dialogue.
The Prime Minister acknowledged that the government had to make difficult economic decisions, including increasing petroleum prices, describing it as a step taken with great reluctance to avoid a heavier burden on the national economy. He further stated that Pakistan continues to face terrorism along its western borders, and praised the country’s armed forces for responding bravely to infiltration attempts and terrorist attacks originating from across the border. Prime Minister Shehbaz Sharif also strongly condemned Israeli attacks in Iran, which resulted in the martyrdom of Ayatollah Syed Ali Khamenei, members of his family and innocent Iranian citizens, expressing condolences on behalf of the Government and people of Pakistan. He reiterated Pakistan’s strong condemnation of attacks on Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, Jordan, Lebanon, Oman, Türkiye and Azerbaijan, and expressed sorrow over the loss of lives in these countries.