IHC seeks response from govt on salary cut under austerity drive

The Islamabad High Court (IHC) has sought a response from the federal government and the Ministry of Law and Justice on a petition filed by a state-owned company, National Grid Company, challenging the notification regarding salary deductions as part of the austerity campaign

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 4th May, 2026) The Islamabad High Court (IHC) has sought a response from the Federal government and the Ministry of Law and Justice on a petition filed by a state-owned company, National Grid Company, challenging the notification regarding salary deductions as part of the austerity campaign.

Justice Khadim Hussain Soomro issued a written order regarding the hearing of the case.

Barrister Umar Ijaz Gilani, counsel for the state-owned company, appeared before the court and argued that the Cabinet Division had issued the notification for salary cuts as part of the austerity drive launched in the context of tensions between the United States and Iran.

"The directives may be applicable to government departments, but they cannot be enforced on state-owned companies," the counsel argued. He said the very purpose of converting government departments into companies was to minimize government interference in their day-to-day affairs.

The lawyer informed the court that the notification issued on March 14 had made salary cuts mandatory. He maintained that the petitioner was a registered company under the Companies Law and not a government department.

The court issued notices to the respondents seeking their replies and adjourned further hearing of the case for a later date.