The Pakistan government announces a pay cut as part of an austerity campaign.

The new policy would use a slab-based deduction method to lower senior management wages in government agencies and regulatory bodies for a period of two months. There will be a five percent cut for officials making between Rs. 300,000 and Rs. 1 million, a fifteen percent cut for those making between Rs. 1 million and Rs. 2 million, a twenty-five percent cut for those making between Rs. 2 million and Rs. 3 million, and a thirty percent cut for those making more than Rs. 3 million.

Additionally, the notification mandates that government representatives who serve on the boards of both public and private firms have their costs deducted in full. The Prime Minister Austerity Fund 2026 will receive all of the money that was taken out.

Instead of celebrating Pakistan Day with customary banquets, the Ministry of Foreign Affairs Pakistan has been directed to do a straightforward flag-hoisting ceremony. Additionally, officers would have their salaries withheld for two days, and budgets for overseas missions will be cut by twenty percent.

Additionally, for the following two months, foreign visits are completely prohibited; instead, ambassadors are instructed to promote Pakistan at international gatherings.

However, work-from-home regulations and limitations on official cars will not apply to operational agencies like the Federal Board of Revenue, Customs, and IRN activities. The four-day workweek will not apply to law enforcement organizations either.

50% less gasoline will be used by operational security organizations, while 60% of government cars will stay grounded. The Shehbaz Sharif will receive a report from the Intelligence Bureau Pakistan following a thorough audit of car usage and fuel consumption.

A subcommittee led by the Finance Secretary has been established to supervise the transfer of savings to the austerity fund, and all federal and provincial departments have been instructed to submit weekly performance reports via an IT portal.