PM Shehbaz, cabinet opts to forgo salaries and benefits

Decision comes as an extension of government's broader austerity policies

ISLAMABAD:

Prime Minister Shehbaz Sharif and his cabinet unanimously agreed on Wednesday to forego salaries and benefits, the PM Office said in a press release.

The decision, taken during a cabinet meeting, was an extension of the government's broader austerity policies, aimed at curbing unnecessary expenditures. The measures were focused on promoting fiscal responsibility and optimizing governmental resources in the face of economic challenges.

In February, in a bid to tighten its belt, the PM while addressing a federal cabinet meeting maintained that the austerity measures are the government's "top priority".

During today's session, Federal Finance Minister Muhammad Aurangzeb gave a comprehensive briefing on the staff-level agreement reached with the International Monetary Fund (IMF) earlier today.

Aurangzeb told the cabinet that the agreement was anticipated to bolster the country's economy and instill confidence among investors.

Read Does austerity lead to prosperity?

Furthermore, the cabinet approved the establishment of the Pakistan International Airlines Holding Company, a pivotal step towards the privatization of the national carrier.

PM Shehbaz approved the privatization of Pakistan International Airlines (PIA) on March 7.

The meeting also solemnly commemorated the martyrs of the recent terrorist attack in Mir Ali.

The cabinet reiterated its unwavering determination to combat terrorism relentlessly, said the PM office press release.

The federal cabinet has introduced stringent measures restricting foreign trips funded by the government, seeking to tighten purse strings on jet-setting. Under the new directives, federal ministers, parliamentarians, and government officials are barred from undertaking foreign trips using government funds without prior approval.

Last week, President Asif Ali Zardari and Interior Minister Mohsin Naqvi also decided to forego their salaries while in office citing the economic challenges faced by the country.