The first bankruptcy proceedings will also affect the salaries of government employees. Allowance greater than 25% will be terminated,, no new allowance will be applied to 11 to 21 grade employees. Increments will be stopped. Leave encashment is currently closed, bonus, honorarium are all closed… orders not to renew the contract. In the next phase, government employees should be prepared for a cut in their salaries.
Pakistan has resorted to taking some desperate cost-cutting measures as the country continues to face a “financial emergency”. The measures include rationing of fuel for government vehicles, restrictions on official travel, stopping leave encashments, medical bill payments and removing allowances among others.
Pakistani cabinet Secretariat in a recent notification said, “In view of the principal approval by the Prime Minister of Pakistan and present financial calamity of the state and the severe shortage of funds, it has become imperative to issue the following instructions, otherwise further financial catastrophe may lead to a situation of stoppage of salaries in public/autonomous organizations,”
