Pakistan’s federal cabinet has decided to give up two months’ salaries as part of an austerity campaign aimed at conserving national resources amid economic pressures stemming from the ongoing Middle East conflict.

The decision was taken during a meeting on austerity measures chaired by Prime Minister Shehbaz Sharif on Monday.

During the session, Finance Minister Muhammad Aurangzeb briefed participants on the need to reduce government expenditure and conserve petroleum products in light of the evolving global situation and potential energy supply disruptions.

Senior cabinet members, including Ishaq Dar, Ahsan Iqbal, Owais Leghari, Ali Pervaiz Malik, Attaullah Tarar, Musadik Masood Malik and Haroon Akhtar, attended the meeting. Representatives from the four provinces and senior officials from relevant institutions were also present, while provincial chief ministers and the prime minister of Azad Kashmir joined the discussion via video link.

Participants also reviewed proposals aimed at extending relief to low-income and vulnerable groups. Discussions focused on reducing government spending and promoting simpler official practices to ease fiscal pressure.

Officials briefed the meeting on the possible economic consequences of the conflict in the Gulf region, noting that volatility in global energy markets and potential supply disruptions could pose challenges for Pakistan’s economy.

The meeting emphasized the need for timely policy actions to safeguard economic stability if the international situation worsens.