Pakistan's Prime Minister Shehbaz Sharif on Saturday approved salary deductions ranging from 5 to 30 per cent for employees of state-owned enterprises (SOEs) and autonomous institutions as part of a broader austerity drive.

The new measures were cleared during a review meeting convened to evaluate a slew of austerity and savings plans announced on Monday to tackle the economic fallout of the fuel crisis triggered by the ongoing US-Israel-Iran conflict.

According to a statement issued by the Prime Minister's Office (PMO), Sharif chaired a high-level meeting to review the impact of fuel price fluctuations and the implementation of government austerity measures.

"It was decided in the meeting that, like government employees, there will be a 5-30 per cent cut in the salaries of employees of state-owned enterprises and autonomous institutions under government patronage," the statement said.

It added that the savings generated through the austerity measures would be used "only for public relief".

Participants were also informed that a third-party audit would oversee a 50 per cent reduction in fuel allocations for government vehicles, while 60 per cent of these vehicles would be taken off the roads over the next two months.

The meeting further decided that government representatives on the boards of various corporations and institutions would no longer receive participation fees, which would instead be counted as part of the savings.

"The meeting was also briefed on the implementation of the government's complete ban on the purchase of new vehicles and the ban on all other government purchases," the statement said.

In addition, the next two months' salaries of cabinet members, ministers, advisers and special assistants would also be "used as savings for public welfare".

"The complete ban on foreign visits of government officers, ministers, ministers of state and special assistants will remain in place," the statement said, quoting the prime minister.

The US-Iran war, now into its third week, has already begun to impact Pakistan. Petroleum prices were raised by Rs 55 per litre last Friday, prompting the government to introduce several austerity measures to curb fuel consumption.

Earlier steps included a 50 per cent cut in fuel allocations for official vehicles for two months, removing 60 per cent of government vehicles from the roads during this period, and introducing a four-day work week.