Prime Minister Shehbaz Sharif approves additional austerity and energy conservation measures, including fuel cuts, travel restrictions and limits on government spending.
Prime Minister Shehbaz Sharif has approved a nationwide austerity campaign and additional energy conservation measures in response to rising petroleum prices in the global market amid tensions in the Middle East.
The decision was taken during a meeting in Islamabad chaired by the prime minister to review austerity and energy conservation measures. Sharif said rising oil prices in the international market were contributing to inflation worldwide and emphasized that the government and elite should make sacrifices first.
The prime minister said a fuel subsidy had already been launched for economically vulnerable and middle-income groups. Motorcycles, rickshaws and vehicles up to 800cc are being provided a subsidy equivalent to Rs 100 per liter.
Under the newly approved measures, fuel allocations for government vehicles will be reduced by 50% for three months. Ambulances, fire brigades, law enforcement vehicles and vehicles used for essential services will be exempt. No exemption will be allowed for administrative or non-operational vehicles.
The meeting also approved a 5% reduction in the non-ERE budget for the 2026-27 financial year. The government has imposed a complete ban on the purchase of all types of new vehicles at the official level, while purchases of durable goods will also be prohibited, except for IT-related procurement.
Government tours and overseas travel will remain restricted for three months. In unavoidable cases, ministers, advisers, ministers of state, special assistants and government officials will travel in economy class.
The government will also maximize the use of video and teleconferencing for official business. Official dinners will be prohibited except those deemed necessary for foreign delegations. Unnecessary spending at government-sponsored seminars, training programs and conferences will also be avoided.
The meeting decided to continue enforcement of the single-dish policy at weddings and other functions.
Under the approved business-hour measures, shops, markets, shopping malls, bazaars and other general business centers will close at 9 p.m., while wedding halls and other event venues will close at 10 p.m. Restaurants, cafes, food outlets and standalone fruit and vegetable shops will close at 11 p.m.
Pharmacies, medical centers, hospitals, bakeries, petrol and CNG stations, electric vehicle charging stations, gyms, sports facilities, IT companies and call centers will be exempt from the operating-hour restrictions.
A committee established to monitor austerity and fuel conservation measures will obtain implementation reports from ministries, divisions, departments, public-sector organizations and provincial governments. It will identify non-compliance and obstacles, recommend corrective measures and submit weekly progress reports to the prime minister.
Sharif directed authorities to ensure the measures are implemented without discrimination and to take all possible steps to reduce government expenditure and conserve energy and fuel.
The federal government has also approved continuation of previously implemented austerity measures for the 2026-27 financial year. These measures will apply to attached departments, state-owned entities, statutory bodies and regulatory authorities.
Deputy Prime Minister and Foreign Minister Sen. Mohammad Ishaq Dar, federal ministers Ahsan Khan Cheema, Ali Pervaiz Malik and Attaullah Tarar, along with senior officials, attended the meeting.
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