The measures, effective immediately, include fuel and budget cuts, restrictions on foreign travel and vehicle purchases, and continued market closing times.
ISLAMABAD: The federal government has announced a new set of austerity and fuel conservation measures, including a 50% reduction in fuel provision for official vehicles for three months and a 5% cut in the Non-ERE Budget for the 2026-27 financial year.
According to a notification issued by the Cabinet Division on Sept. 17, 2026, the measures have been introduced following recommendations from the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures. The measures will take effect immediately.
The 50% fuel reduction will apply to official vehicles, with exceptions for operational vehicles of the Armed Forces, Civil Armed Forces, law enforcement agencies, essential services and the Federal Board of Revenue. However, administrative or non-operational formations of these entities will be covered by the measure. Development projects are excluded.
The government has also ordered a 5% reduction in the Non-ERE Budget throughout fiscal year 2026-27, with the deduction to be made monthly. The measure will also apply to foreign missions and officials posted there, while provisions for rent, education fees and medical care will continue to be met. Development projects are again excluded.
The notification imposes a complete ban on the purchase of vehicles of all types and a separate ban on purchasing durable goods, except for IT procurements. Both measures exclude development projects.
Foreign visits and travel will also remain banned for three months, including obligatory visits, except for scholarships offered by international development partners and training or courses arranged through the Economic Affairs Division or under government institutional agreements. Pakistani ambassadors or high commissioners will represent the country at obligatory and important events.
For unavoidable travel, ministers, advisers, ministers of state, special assistants to the prime minister, parliamentary representatives and government functionaries will be required to travel in economy class. Government meetings will preferably be conducted through teleconferencing, while official dinners will not be hosted except for visiting foreign delegations.
The government has also prohibited officially funded seminars, training sessions and conferences, except where unavoidable. In such cases, government venues will be used. The notification further states that only a single dish should be served at marriage-related functions and events.
Meanwhile, previously notified market closing timings will continue. Shops, markets, shopping malls and bazaars will close at 9 p.m., marriage halls and similar venues at 10 p.m., and restaurants, cafes, eateries and food outlets at 11 p.m. Takeaway and home delivery services are exempt. Pharmacies, hospitals, clinics, laboratories, fuel and CNG stations, electric vehicle charging stations, gyms, sports facilities, IT companies and call centers remain exempt from the closing-time restrictions.
Requests for exemptions may be considered on a case-by-case basis by the monitoring committee, which will submit recommendations to the prime minister for approval. Provincial and regional governments may also consider adopting similar measures.
Austerity Notification Dated 17.9.26
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