ISLAMABAD: The federal government has introduced a comprehensive package of austerity measures, including a 50 percent reduction in the fuel quota for government vehicles for a period of three months. Operational vehicles, essential services, and vehicles related to development projects have been exempted from this fuel cut.
As part of the fiscal adjustments, a 5 percent reduction has been decided for the non-ARE budget of the financial year 2026-27. Furthermore, a complete ban has been imposed on the procurement of all new vehicles, including government vehicles. Alongside IT-related purchases, the procurement of all durable goods has also been banned.
Under these new directives, foreign tours and travel activities under the federal government are suspended for three months, though exemptions will remain in place for specific sectors and unavoidable travel. For unavoidable foreign trips, ministers, advisors, and government officials are restricted to traveling in economy class only.
To promote thrift, official meetings are directed to prioritize video conferencing. Hosting government dinners—except for foreign delegations—as well as government-funded seminars, training programs, and conferences have been prohibited. Unavoidable official events must use government auditoriums and committee rooms, while wedding ceremonies are restricted to serving only a single dish.
In addition to administrative steps, commercial operating hours have been curtailed. Shops, markets, shopping malls, and bazaars will close at 9:00 PM, while wedding halls, marquees, and similar event venues will shut down at 10:00 PM. Restaurants, cafes, and food outlets are required to close by 11:00 PM, though takeaway and home delivery services are exempt. Essential sectors, including pharmacies, hospitals, clinics, medical laboratories, petrol pumps, bakeries, tandoors, milk and dairy shops, electric vehicle charging stations, gyms, and other essential areas, remain exempt from these restrictions.
Requests for exemptions from these austerity measures will be considered on a case-by-case basis. Meanwhile, provincial and regional governments may also consider adopting similar austerity measures.
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