What happened
Prime Minister Shehbaz Sharif directed that salaries of federal government employees be paid before the Eidul Fitr holidays, his office said on 16 March 2026, and the Cabinet Division tasked the Intelligence Bureau (IB) with auditing the enforcement of Pakistan’s national austerity and fuel-conservation plan.
According to the Prime Minister’s Office, the salary directive was issued on the prime minister’s orders and federal departments had begun arrangements to ensure payment before the holidays, Radio Pakistan reported. The announcement came before a public holiday period, with the government having declared 20 and 21 March as Eid holidays.
Separately, a Cabinet Division notification issued on Monday said the IB would “conduct a comprehensive audit and validation exercise, including impact assessment, with respect to all fuel conservation and additional austerity measures”. Weekly reports would be submitted to the prime minister and to the committee monitoring the plan, Pakistan Today reported. The notification also tasked the IB with monitoring compliance within the National Assembly and Senate secretariats, with immediate action against officers found violating the measures.
The austerity plan
The prime minister chaired a review meeting on austerity, public relief and petroleum reserves on Monday, according to the PM Office. He directed petroleum distribution companies to sell products at government-set prices with full transparency, ordered a third-party audit of the measures and said a national austerity plan was already in effect, with additional steps under consideration. Officials told the meeting that petroleum supplies were adequate despite global market turmoil, and the prime minister said citizens could use the Pak App to report fuel shortages or overpricing. The meeting was attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, Finance Minister Muhammad Aurangzeb and other senior ministers and officials.
The austerity plan, announced after a record Rs55-per-litre increase in petrol and diesel prices, includes cutting government expenditure, a four-day workweek, reduced official movement and salary reductions. Members of the federal cabinet, advisers and special assistants are to forgo two months’ salaries, and parliamentarians face a 25% salary cut over the same period, according to the notification and PM Office statements.
Why it matters
The measures reflect the strain on Pakistan’s budget and households from war-driven fuel costs, with the government trying to conserve foreign exchange, hold down the prices it can control and shield lower-income users. Paying federal salaries early is intended to ease pressure on employees before the Eid holiday, when household spending typically rises.
What remains uncertain
How much the audit will change compliance, and whether the salary cuts and conservation measures will be extended beyond their initial two-month period, has not been announced. It is also unclear how strictly the cuts will be applied across institutions with differing rules and budgets.
Sources & reporting notes
This is a synthesis of published reporting, not eyewitness reconstruction. Sources were reviewed on 16 March 2026.
- Radio Pakistan — "PM announces major relief for federal employees ahead of Eid"Published 16 March 2026 · The directive to pay federal salaries before the Eidul Fitr holidays.
- Pakistan Today — "PM pledges economic stability, public relief amid global uncertainties"Published 16 March 2026 · The review meeting, the IB audit notification and the details of the austerity measures.
