ISLAMABAD, Sep 17 (APP):The federal government on Thursday announced a fresh set of austerity and fuel conservation measures with immediate effect, including a 50 per cent cut in fuel provision for official vehicles, a five per cent reduction in the non-ERE budget and a three-month ban on foreign visits and travel. According to a notification issued by the Cabinet Division, the measures were approved on the recommendations of the Committee …
Federal govt imposes fresh austerity measures, cuts official fuel by 50pc
ISLAMABAD, Sep 17 (APP):The federal government on Thursday announced a fresh set of austerity and fuel conservation measures with immediate effect, including a 50 per cent cut in fuel provision for official vehicles, a five per cent reduction in the non-ERE budget and a three-month ban on foreign visits and travel.
According to a notification issued by the Cabinet Division, the measures were approved on the recommendations of the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures.
Under the measures, fuel provision for official vehicles will be reduced by 50 per cent for three months.
The reduction will not apply to operational vehicles of the Armed Forces, Civil Armed Forces, law enforcement agencies, essential services and the Federal Board of Revenue (FBR). However, the measure will apply to vehicles of administrative or non-operational formations of these entities. Development projects have also been excluded from the measure.
The government has also ordered a five per cent reduction in the Non-ERE Budget for the entire financial year 2026-27, with deductions to be made on a monthly basis. The measure will also apply to foreign missions and officers/officials posted there, while their obligations relating to rent, educational fees and medical care will continue to be met.
A complete ban has been imposed on the purchase of vehicles of all types, while procurement of all durables has also been prohibited, except IT-related procurements. These restrictions will not apply to development projects.
The government has further imposed a complete ban on foreign visits and travel for three months, including obligatory visits, except scholarships offered by international development partners and training and courses arranged through the Economic Affairs Division or under institutional agreements with the Government of Pakistan.
The notification said ambassadors or high commissioners of Pakistan would represent the country at obligatory and important events.
In case of unavoidable visits, ministers, advisers, ministers of state, special assistants to the prime minister, parliamentarians and government officials will travel only in economy class.
The government has also directed that meetings should preferably be held through teleconferencing, except intra-city meetings.
No official dinners will be hosted, except for visiting foreign delegations.
The notification also prohibits all official seminars, trainings and conferences funded by the government. Where such events are unavoidable, government venues, including auditoriums, committee rooms and other official facilities, will be used.
Only a single dish will be served at all marriage-related functions and events.
The Cabinet Division also retained the market closing timings notified on June 19, 2026.
Under the timings, shops, markets, shopping malls, bazaars, departmental, grocery, general and kiryana stores will close at 9 p.m.; marriage halls, marquees and other commercial venues where festive events are held at 10 p.m.; and restaurants, cafes, eateries and food outlets, as well as standalone fruit and vegetable shops, at 11 p.m. Takeaway and home delivery services will remain exempt.
Pharmacies, medical and medical supplies stores, medical laboratories, clinics, hospitals, standalone bakeries and tandoors, standalone milk and dairy shops, fuel/CNG pumps, electric vehicle charging stations, gyms, sports facilities and sports/padel courts, IT companies and call centres will remain exempt from the closing-time restrictions.
The government has also allowed requests for exemption from any of the austerity measures to be considered on a case-to-case basis by the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures. The committee will submit its recommendations for approval by the prime minister.
Exemptions granted by the committee will not require any further exemption from the Austerity Committee constituted by the Finance Division.
The notification said provincial and regional governments may also consider adopting similar measures.
