ISLAMABAD: The federal government has announced a fresh package of austerity measures aimed at reducing fuel consumption and controlling government expenditure during the next three months.
According to a notification issued by the Cabinet Division, fuel allocations for government vehicles will be reduced by 50% for three months as part of the government’s efforts to conserve fuel and reduce spending.
However, operational vehicles of the armed forces, civil armed forces and law enforcement agencies will remain exempt from the fuel reduction.
Vehicles used for essential services and operational vehicles of the Federal Board of Revenue (FBR) will also be exempted.
Under the new measures, government departments will receive half of their existing fuel allocations for the next three months.
The notification states that the fuel-saving measures will not apply to development projects.
The government has also decided to reduce the non-ERE budget by 5% during the financial year 2026-27. The reduction will be implemented on a monthly basis.
The federal government has imposed a complete ban on the purchase of all types of government vehicles.
A ban has also been placed on the purchase of durable goods, except for information technology-related equipment.
These measures are intended to limit non-essential government expenditure and promote fiscal discipline.
The government has also imposed a complete ban on official foreign trips and related travel expenditure for three months.
However, foreign visits undertaken under scholarships, training courses and institutional agreements will remain exempt.
In cases where an overseas visit is considered unavoidable, ministers and government officials will be required to travel in economy class.
The government has further directed departments to hold official meetings through teleconferencing wherever possible.
Under the austerity package, government departments will not be allowed to host official dinners, except for events involving foreign delegations.
The use of government funds for seminars, training programmes and conferences has also been prohibited.
For unavoidable events, departments have been directed to use government auditoriums and committee rooms instead of commercial venues.
The notification also directs that only one dish should be served at wedding functions.
The federal government has announced new operating-hour restrictions for commercial establishments.
Under the measures:
- Shops, markets, shopping malls and bazaars will close by 9pm.
- Marriage halls, marquees and commercial event venues will close by 10pm.
- Restaurants, cafes and food outlets will close by 11pm.
- Takeaway and home-delivery services will be exempt from the prescribed closing times.
Several essential businesses and services will remain exempt from the restrictions.
These include pharmacies, clinics, hospitals, medical laboratories and medical equipment stores.
Tandoors, milk and dairy shops, fuel stations and electric vehicle charging stations will also be exempt.
Gyms, sports facilities, IT companies and call centres have also been included in the exempted categories.
The notification states that requests for exemptions from the austerity measures will be considered on a case-by-case basis.
Recommendations for exemptions will be submitted to the prime minister for approval.
The federal government has also stated that provincial and regional governments may consider adopting similar austerity measures in their respective jurisdictions.
The latest measures come as the government seeks to reduce fuel consumption, contain non-essential expenditure and improve financial discipline during the 2026-27 fiscal year.
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