In a decisive move to shield the national economy from the fallout of the ongoing conflict in the Middle East, the Privatization and Corporatization Board (PCB) has issued a stringent new directive mandating deep cost-cutting measures across all state-owned enterprises and their subsidiaries.
The circular, which builds upon initial restrictions imposed on 30 March, outlines a comprehensive austerity plan targeting operational and payroll expenses to ensure sustainable cash flow during a period of heightened economic constraint.
The latest directive mandates a significant reduction in expenditure on employee salaries and allowances, an immediate suspension of all staff promotions, and a freeze on new appointments except for roles critical to operational continuity. Additionally, companies have been instructed to eliminate non-essential overtime and rigorously avoid any expenses not directly tied to their core responsibilities as defined in their Articles of Association. The PCB also calls for a moratorium on all non-essential ceremonies, urging resource-sharing between companies to minimise costs for any events that must proceed.
This expands on earlier cost-containment measures that severely curtailed international activity. These include suspending all non-essential overseas travel, mandating online meetings with international partners, banning business-class flights, and halting training trips and participation in foreign seminars and fairs. Companies are also directed to maximise the use of renewable energy to reduce electricity costs.
The PCB has tasked the boards of these companies with the urgent implementation of these measures, emphasising the need to proactively manage the financial impact of the Middle East conflict on both the companies' viability and the broader economy.
This coordinated belt-tightening reflects a government-wide effort to navigate economic uncertainty through fiscal prudence and operational efficiency.