Pakistan has ordered a 50% cut in fuel supplies for government vehicles for three months and imposed sweeping austerity measures to reduce spending and conserve fuel amid economic pressures. The Cabinet Division issued the notification on Thursday, banning new official vehicle purchases, most government-funded foreign travel, and official events, while also setting earlier closing times for markets and restaurants.
What are the details of Pakistan's austerity measures?
The measures cut fuel for all government vehicles by 50% for three months, ban vehicle and durable goods purchases, and halt most government-funded foreign travel and events. They also reduce the non-employee related expenditure budget by 5% for fiscal year 2026-27, with cuts applied monthly. Essential services, development projects and armed forces vehicles are exempt.
Which government vehicles are exempt from the fuel cuts?
Operational vehicles of the armed forces, civil armed forces and law enforcement agencies are exempt from the fuel reduction, along with vehicles used for essential services. Operational vehicles of the Federal Board of Revenue are also excluded. The fuel cuts and spending reductions will not apply to development projects.
What travel and procurement restrictions have been imposed?
The government has banned the purchase of all types of official vehicles, along with durable goods, except for IT-related procurement. A complete ban on official foreign visits will remain in place for three months, though visits under scholarships, training courses and institutional agreements are exempt. Where travel is unavoidable, ministers and officials must fly economy class, and meetings should be held via teleconferencing where possible.
What restrictions apply to government events and functions?
Government-funded official dinners are prohibited, except for events involving foreign delegations, and government-funded seminars, training programs and conferences are also banned. For unavoidable events, officials must use government auditoriums and committee rooms instead of outside venues. The notification further directs that only one dish be served at all wedding ceremonies.
When will markets and restaurants have to close under the new rules?
Shops, markets, shopping malls and bazaars must close by 9 p.m., while marriage halls, marquees and commercial event venues will shut by 10 p.m. Restaurants, cafes and food outlets will close by 11 p.m., though takeaway and home delivery services are exempt from these hours. Pharmacies, clinics, hospitals, medical laboratories, tandoors, dairy shops, fuel stations, gyms and IT companies are also exempt from the broader restrictions.
Requests for exemptions from the austerity measures will be reviewed case by case, with recommendations submitted to the prime minister for approval. The notification adds that provincial and regional governments may consider adopting similar measures of their own.
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