Notification Salary Deduction 5% to 30% Govt Employees (SB and SOE Employees)

Last Updated on March 16, 2026 by Galaxy World

Cabinet Division’s Notification Salary Deduction 5% to 30% Govt Employees (SB and SOE employees) was issued on 14th March, 2026, in Islamabad, in continuation of earlier notifications dated 9th and 10th March, 2026. The notification introduces austerity and fuel conservation measures, including salary deductions, board fee deductions, restrictions on foreign visits, monitoring mechanisms, and operational adjustments for various government institutions.

Notification Salary Deduction 5% to 30% Govt Employees (SB and SOE Employees)

No.7-2/2026-Min.I.– In continuation of Cabinet Division’s notifications of even numbers dated 9th and 10th March, 2026, the Prime Minister, on consideration of the recommendations of the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures, has been pleased to further direct the implementation of the following austerity and fuel conservation measures:

1. Salary Deduction for Statutory Bodies and State-Owned Enterprises, etc.:

Gross salaries of the higher management of all Statutory and Autonomous Bodies, Regulatory Authorities, and State-Owned Enterprises, etc., including but not limited to their Chief Executive Officers, Executive Directors, Directors, and Senior Managers, would be deducted for the next two months at the following rates, the proceeds of which shall be deposited in the Prime Minister’s Austerity Fund 2026:

2. Deduction of Board Fees of Government Nominees on Boards of State-Owned Enterprises etc:

   Hundred percent (100%) of the Board fees paid to Government nominees on the Boards of Directors of State-Owned Enterprises as well as Statutory and Autonomous Bodies, for attending Board meetings etc, would be deposited for the next two months in the ‘Prime Minister’s Austerity Fund 2026’.

3. Deduction of Board Fees of Government Nominees on Boards of Private Sector Companies etc:

   Hundred percent (100%) of the board fees paid to Government nominees on the Boards of Directors of private sector companies etc would be deposited for the next two months in the Prime Minister’s Austerity Fund 2026.

4. Ministry of Foreign Affairs:

   (i) Simple flag hoisting ceremonies would be held in the missions for 23rd March, 2026 rather than receptions; and

   (ii) The twenty percent (20%) reduction in the Non-ERE budget for the Fourth Quarter and the two-days salary deduction, stipulated at para 1A(v) & (vi) of Cabinet Division’s notifications No. 7-2/2026-Min.I. dated 09.03.2026 and 10.03.2026, will also apply in the case of foreign missions and the officers /officials, belonging to any occupational group or service, posted in these missions. However, obligations relating to rents, educational fees and medical care arrangements will be met.

5. Revenue Division

   (i) To enable the Federal Board of Revenue to meet revenue collection targets, the measures of work-from-home and four-day workweek, relating to Public Sector Operations, as specified at para 1B(i)(b) & (ii) of Cabinet Division’s notification No. 7-2/2026-Min.I. dated 09.03.2026 and 10.03.2026, would not be applicable in the case of the Revenue Division, the Federal Board of Revenue and the other organisations lying in the administrative purview of the Revenue Division;

   (ii) For the same reason, the Cabinet Division will not apply the measure of reducing fuel provision by fifty percent (50%) and grounding sixty percent (60%) of vehicles, as specified at para 1A(i) & (ii) of notification No. 7-2/2026-Min.I. dated 09.03.2026, to the official vehicles of FBR involved in Customs Enforcement Operations and Inland Revenue Enforcement Network (IREN) Operations; however,

   (iii) The FBR would achieve the specified fuel reduction and vehicle grounding targets on the whole through higher adjustments in other Wings.

6. Law-Enforcement Agencies and Civil Armed Forces

   (i) Owing to security imperatives, the measures of work-from-home and four-day workweek as specified at Para 1B(1)(i) & (ii) of Cabinet Division’s notifications No. 7-2/2026-Min.I. dated 09.03.2026 and 10.03.2026, would not be applicable in respect of Law-Enforcement Agencies and Civil Armed forces;

   (ii) For the same reason, the measure of reduction of fuel provision by fifty percent (50%) and grounding of sixty percent (60%) vehicles, as specified at para 1A(i) & (ii) of Cabinet Division’s notification No. 7-2/2026-Min.I. dated 09.03.2026 would also not be applicable in the case of Law-Enforcement Agencies and Civil Armed forces; however,

   (iii) Tiers of Law Enforcement Agencies and Civil Armed Forces that are not actively involved in ground level operations with respect to security and maintenance of law and order, would be subject to the reduction of fuel provision by fifty percent (50%) and grounding of sixty percent (60%) vehicles.

7. Complete Ban on Foreign Visits:

   (i) There shall be a complete ban on foreign visits and travel, even in the case of obligatory events, for the next two months. In case of events in which the participation of Pakistan is obligatory or important, the respective Ambassador or High Commissioner of Pakistan would represent; however,

   (ii) Short and long term foreign trainings funded entirely by international financial or development agencies, and for which a formal selection process has been followed by the agencies or the Economic Affairs Division would be exempt.

8. Use of Official Vehicles:

   (i) The use of security vehicles accompanying vulnerable dignitaries would be rationalized keeping in view the security threat; and

   (ii) Principal Accounting Officers of the respective Ministries /Divisions would ensure that official vehicles are being used strictly for official purposes.

9. Teleconferencing:

   The ban on physical meetings would not be applicable in the case of intra-city meetings.

10. Monitoring & Compliance:

    All Federal Government establishments and Provincial Governments would report compliance on the implementation of the conservation and additional austerity measures weekly in the prescribed format through a digital portal that the Ministry of Information Technology and Telecommunication is developing.

11. Audit by the Intelligence Bureau:

    The Intelligence Bureau would conduct a comprehensive audit and validation exercise with respect to reduction of fuel allocation by fifty percent (50%) and grounding of sixty percent (60%) official vehicles. The Intelligence Bureau would submit weekly reports to the Prime Minister as well as the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures.

12. Provision of APN devices

    for usage of E-Office would be ensured by the Ministry of Information Technology and Telecommunication within four days. These devices would be provided to officers nominated by the Principal Accounting Officers. Ministries /Divisions shall submit their respective demand for the devices to the Ministry of Information Technology and Telecommunication immediately.

13. Sub-Committee on Transfer of Financial Savings:

(ii) Secretary, Finance Division, Government of Pakistan — Convenor
(iii) Secretary, Finance Department, Punjab — Member
(iv) Secretary, Finance Department, Sindh — Member
(v) Secretary, Finance Department, Khyber Pakhtunkhwa — Member
(vi) Secretary, Finance Department, Balochistan — Member
(vii) Secretary, Finance Department, AJK — Member
(viii) Secretary, Finance Department, Gilgit-Baltistan — Member