Government Suspends Allowances and Non-Salary Payments for Public Employees Ahead of Eid
Islamabad: In a major decision ahead of Eid-ul-Fitr, the federal government of Pakistan has suspended all non-salary payments, including allowances, for government employees as part of austerity measures.
According to officials, the Accountant General Pakistan Revenues has halted all payments other than regular salaries following special directives from the government. The move is aimed at controlling expenditures and maintaining fiscal discipline.
Authorities stated that the decision comes in the context of ongoing negotiations with the International Monetary Fund (IMF), as the government seeks to meet financial targets and benchmarks. As a result, all non-salary expenditures have been temporarily suspended.
The step reflects Islamabad’s efforts to implement key economic reforms and ensure financial stability during its engagement with the IMF.
Earlier, Prime Minister Shehbaz Sharif had announced a reduction in salaries ranging from 5 to 30 percent for employees of federal and autonomous institutions under an austerity campaign.
The government has also introduced additional cost-cutting measures, including a 50 percent reduction in fuel consumption for official vehicles for the next two months, grounding 60 percent of the government fleet, enforcing third-party audits, and halting the purchase of new vehicles.
Furthermore, salaries of cabinet members, ministers, advisers, and special assistants will be redirected toward public welfare, while online meetings will be prioritized to reduce administrative expenses.
