The Punjab Finance Department has issued an official notification announcing salary deductions for government officers as part of the government’s austerity policy. The circular has been sent to the Accountant General (AG) Office and all relevant departments for implementation.
According to the notification, officers in Grade 17 and above will face a deduction equivalent to two days of their basic salary. The deduction will take effect from salaries for April 2026, with the amount directly reduced from officers’ basic pay.
The directive states that the policy will apply not only to government departments but also to autonomous and semi-autonomous bodies, government-owned companies, and local government institutions across Punjab.
Officials said the funds collected through the salary deduction will be deposited into the Prime Minister’s Austerity Fund 2026 Punjab, aimed at reducing government expenditures and strengthening financial discipline.
Furthermore, formal instructions have been issued to all departments, including the Board of Revenue, Punjab and the Planning and Development Board, Punjab, to ensure implementation of the decision. Notifications have also been forwarded to local government institutions throughout the province.
Earlier, the Government of Pakistan announced new administrative decisions to strengthen austerity and fuel conservation measures in the country.
According to an official statement issued by the Cabinet Division, Shehbaz Sharif reviewed the recommendations of a committee formed to monitor fuel conservation and additional austerity measures.
After the review, he directed the implementation of further steps.
Two-month salary cut for senior govt officials
According to the details, the decision was taken in continuation of earlier instructions issued by the Cabinet Division.
The government said that due to the current economic conditions and the need for careful use of resources, it is necessary to reduce government spending and limit energy consumption in public institutions.
As part of these measures, the government has decided to cut the salaries of senior management in government and semi-government institutions for two months.
The statement said the decision will apply to the senior management of all legal and autonomous bodies, regulatory authorities, and state-owned enterprises.
Also read: Salary deduction notified for govt employees, check details here
