LAHORE: The Punjab government has taken several austerity measures to address the unprecedented economic challenges arising from the ongoing conflict in the region.
Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman on Thursday chaired the maiden meeting of a committee established by the Punjab government to monitor austerity measures. Punjab Communications and Works Minister Sohaib Ahmed Bharath, Punjab Irrigation Minister Muhammad Kazim Pirzada, the Additional Chief Secretary, provincial secretaries and senior officers from administrative departments attended the meeting.
Its purpose was to review the steps taken by the provincial government for the prudent use of resources in the light of ongoing war in Iran and the overall economic situation in the region, as well as to prepare the next course of action.
While addressing the committee, Punjab Finance Secretary Mujahid Sherdil highlighted that, as part of austerity measures, a complete ban has been imposed on vehicle purchases across all government departments, with any vehicle acquisition requiring approval from the finance department.
Only essential staff will report to work to reduce fuel and electricity costs in offices. However, online meetings will be held to ensure continuity in office operations. Additionally, the private sector will also be encouraged to implement austerity measures.
The meeting also discussed various suggestions from departmental heads regarding the reduction of unnecessary expenses, the improvement of financial discipline, and the effective and transparent use of government resources. Participants informed the committee about the progress made in implementing austerity measures in their respective departments.
Expressing satisfaction over the austerity measures taken by various departments, Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman directed all relevant departments to submit weekly reports detailing their implementation of these measures and the resources saved through their initiatives.
“All departments should enhance transparency, accountability, and inter-departmental coordination in their administrative affairs to ensure visible positive outcomes from government measures,” he added.
He said the Punjab government has decided to significantly reduce ongoing expenditures to ensure the prudent use of resources in the province. He further said that controls will also be placed on unnecessary expenditures within the development budget.
“The provincial cabinet members have voluntarily agreed not to receive their salaries for the next two months. Previously, a notification from the finance department indicated that two days’ salary would be deducted from the basic salaries of officers in Grade 17 and above across all government departments. Additionally, 25 percent will be deducted from the salaries and allowances of assembly members for two months. Furthermore, board fees for members of public sector companies, autonomous bodies, and specialised institutions will not be paid for the next two months,” he added.
Copyright Business Recorder, 2026
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