PM Shehbaz, his cabinet forgo salaries, privileges due to economic challenges

In a bid to rejuvenate the cash-strapped economy through a series of austerity measures, Prime Minister Shehbaz Sharif and his cabinet members have opted to forgo their salaries and benefits.

This decision was made during a meeting of the federal cabinet held on Wednesday.

During the meeting, Finance Minister Muhammad Aurangzeb provided a comprehensive briefing to the cabinet members on the staff-level agreement with the International Monetary Fund (IMF) regarding the final review for a $3 billion loan program.

Pakistan is currently facing a severe financial crisis as its foreign exchange reserves have dwindled to around $3 billion, which is only enough to cover essential imports for three weeks.

Muhammad Aurangzeb expressed confidence that the agreement with the US-based global lender will improve the country's economy and further boost investors confidence.

In a major step towards privatising Pakistan International Airlines, the federal cabinet approved the formation of the PIA Holding Company.

Earlier in February, the government announced a series of austerity measures to revive the cash-strapped economy. These measures include restrictions on foreign trips for state officials and a 15% cut in government spending.

In addition to other cost-cutting measures, the government also imposed a ban on luxury items and vehicles until June 2024. All cabinet members will now pay their own utility bills, and government employees will not be allotted more than one plot.