PCB Instructs SOEs to Cut Spending Amid Middle East War

The Privatization and Corporatization Board (PCB) has instructed State-Owned Enterprises (SOEs) to implement cost-cutting measures to mitigate the economic impact of the ongoing war in the Middle East.

In a circular issued yesterday, the PCB stated that similar instructions had already been given on 30 March, with the latest directive outlining additional steps to further reduce expenditure.

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The measures include significant reductions in spending on staff salaries and allowances, alongside tighter controls on workforce-related costs. SOEs have been instructed to complete work within official working hours and to avoid overtime except in cases deemed absolutely necessary.

The PCB has also directed a halt on promotions and advised against new recruitment, even for positions included in approved administrative frameworks, unless such roles are essential for operations.

Companies have been instructed to limit expenditure strictly to activities required to fulfil their statutory responsibilities, while avoiding non-essential events. International travel has been restricted to only critical purposes, with online meetings to be used as the primary alternative. Spending on overseas travel is to be minimised as much as possible, and overseas training programmes are to be suspended in favour of virtual training.

The circular further encourages the use of ferry services for staff transport where available, and calls for increased adoption of renewable energy in company operations where feasible.

SOEs have also been asked to assess the potential economic impact of the Middle East conflict and take appropriate action to ease any resulting financial burden on the public.

Other government institutions have similarly introduced measures in response to the situation, including reductions in official working hours and the suspension of overtime work.