Pakistan’s Austerity Drive: What Are New Restrictions?

News Desk

Islamabad: With the government stepping up efforts to contain public expenditure and conserve fuel amid a challenging economic situation, Pakistan has introduced a fresh package of austerity measures covering government vehicles, official travel, procurement, public events and commercial operating hours.

The measures, issued through a notification by the Cabinet Division, are aimed at reducing what the government describes as unnecessary expenditure while conserving national fuel reserves.

Here is what the new austerity plan means:

50% cut in fuel for government vehicles

Fuel allocations for all administrative and non-operational government vehicles have been cut by 50 percent for three months.

The restriction does not apply to operational vehicles of the armed forces, civil armed forces, law enforcement agencies, emergency services and the Federal Board of Revenue (FBR).

No new government vehicles

The government has imposed a complete ban on the purchase of new government vehicles as part of the cost-cutting drive.

5% cut in non-salary spending

A 5 percent reduction in the non-salary budget has been ordered for the current fiscal year, 2026-27.

The government has also prohibited procurement of durable goods, with IT equipment excluded from the ban.

Foreign official visits restricted

All foreign official visits will remain banned for three months, except travel related to:

•  Scholarships
• Foreign training courses
• International agreements

For unavoidable and critical events abroad, Pakistan’s ambassador or high commissioner in the relevant country will represent the country instead of a government delegation.

Where an essential official visit is approved, ministers and government officials must travel in economy class.

More meetings to move online

Government departments have been directed to conduct meetings through teleconferencing and online platforms wherever possible.

The austerity plan also bans official dinners, except those arranged for foreign delegations.

Government-funded seminars, conferences and workshops have also been prohibited.

Where an event is unavoidable, officials have been directed to use government auditoriums or committee rooms rather than costly external venues.

One-dish rule for weddings

As part of the broader austerity campaign, a one-dish rule has been mandated for wedding ceremonies.

The measure extends the conservation drive beyond government offices and into social and public activities.

New closing times for businesses

The government has also introduced revised closing hours for commercial establishments as part of its energy-conservation measures.

Under the new schedule:

• Shops, markets and shopping malls: close by 9:00 PM
• Wedding halls: close by 10:00 PM
• Restaurants, cafes and food outlets: close by 11:00 PM

Several essential and public-convenience services are exempt from these timings.

These include home delivery and takeaway services, hospitals, pharmacies, medical laboratories, tandoors, bakeries, milk shops, fuel stations, EV charging stations, call centres, IT companies, gyms and sports facilities.

Exemptions to be reviewed case by case

The federal government has established a specialized committee to examine requests for exemptions from the austerity measures.

The committee will review such requests individually and submit its recommendations to the prime minister.

Provinces asked to follow suit

The federal government has also directed the four provinces and regional governments to consider introducing similar fuel-conservation and austerity measures at their respective levels.

The new package therefore represents a broader government effort to reduce official spending, limit fuel consumption and curb energy use while maintaining exemptions for essential services and operations considered critical to public safety and national administration.