In a significant move amid the government’s ongoing efforts to address the escalating fuel shortage crisis, the Federal Board of Revenue (FBR) has been exempted from the newly imposed austerity measures affecting other federal and provincial departments. While the government has introduced a series of restrictions aimed at conserving energy and reducing fuel consumption, all FBR offices across Pakistan will remain open and fully functional this Friday. This decision underscores the critical role the tax authority plays in the country’s economic framework, especially during the peak Eid shopping period.
The Cabinet Division recently issued directives mandating office closures and energy-saving protocols across various government departments. However, these instructions explicitly exclude the FBR, which is tasked with intensifying efforts to maximize Sales Tax collection amid a widening revenue gap. Unlike other government employees who have been granted the option to work from home to reduce office attendance and fuel use, FBR staff members are required to report to their workplaces in person. This exception highlights the urgency with which the government is pursuing its revenue targets to mitigate the current economic challenges.
This development comes against the backdrop of Prime Minister Shehbaz Sharif’s announcement of comprehensive austerity measures designed to alleviate the economic strain on the country. The Prime Minister’s plan includes a 50 percent cut in petrol consumption for official government vehicles over the next two months, with exemptions only for emergency services such as ambulances and public transport buses. Additionally, 60 percent of departmental vehicles will be temporarily withdrawn from service, and procurement of non-essential items like vehicles, air conditioners, and furniture has been suspended to curb unnecessary expenditure.
Furthermore, the austerity package extends to salary adjustments for government officials. Cabinet members, ministers, advisers, and special assistants will forgo their salaries for two months, while members of Parliament will face a 25 percent reduction in their pay. Senior bureaucrats in Grade 20 and above, earning more than Rs300,000, will have two days’ salary deducted, with the funds redirected toward public relief initiatives. Departments have also been instructed to cut all non-salary expenses by 20 percent, reflecting the government’s commitment to fiscal discipline during these trying times.
To further conserve fuel, the government has mandated that teleconferencing and virtual meetings take precedence over physical gatherings. Only half of the workforce in both public and private sectors will be required to attend offices, except for essential services where full attendance remains necessary. Offices will operate four days a week, with an additional holiday introduced to reduce energy consumption. However, Prime Minister Shehbaz Sharif clarified that these restrictions do not apply to critical sectors such as banking, industry, and agriculture, which must continue functioning without interruption.
Additional measures include the cancellation of official seminars, conferences, dinners, and Iftar parties outside government premises, with such events now confined to government facilities. The education sector has also been impacted, with all schools granted a two-week holiday starting this weekend. Higher education institutions will shift to online classes immediately to ensure uninterrupted learning for students during this period.
Prime Minister Shehbaz Sharif has issued a stern warning to hoarders and profiteers dealing in petrol, diesel, and other essential commodities, emphasizing that strict legal action will be taken against those attempting to exploit the crisis. Provincial governments have been tasked with enforcing these austerity measures rigorously to maximize their effectiveness. The Prime Minister stressed that these steps are temporary and precautionary, aimed at easing the burden on ordinary citizens while promoting the prudent use of public resources amid the ongoing economic difficulties.
