PM approves austerity drive as global petroleum prices surge

ISLAMABAD, Sep 17 (APP):Prime Minister Shehbaz Sharif on Thursday approved a nationwide austerity and energy conservation campaign in view of rising global petroleum prices amid tensions in the Middle East.

The decision was taken at a high-level meeting chaired by the prime minister to review austerity and energy conservation measures, a Prime Minister’s Office news release said.

The prime minister said the rise in petroleum prices in the international market had triggered inflationary pressures across the world, stressing that sacrifices should first be made by the government and the elite.

He said a fuel subsidy had already been initiated for economically vulnerable and middle-income segments, under which motorcycles, rickshaws and vehicles up to 800cc were being provided a subsidy of Rs100 per litre.

The prime minister directed the authorities to ensure immediate and effective implementation of measures aimed at reducing unnecessary government expenditure and ensuring prudent use of national resources.

The meeting approved a 50 percent reduction in fuel allocations for government vehicles for three months. However, ambulances, fire brigades, law enforcement agencies, and essential service vehicles are exempt from this measure, while administrative and non-operational vehicles will receive no exemption.

The meeting also approved a five per cent cut in the non-ERE budget for the fiscal year 2026-27 and imposed a complete ban on the purchase of new vehicles at the government level.

A ban was also imposed on the procurement of all durable goods, except IT-related equipment. Government visits and overseas travel will remain suspended for three months; however, in unavoidable cases, ministers, advisers, ministers of state, special assistants and government officials must travel in economy class.

The meeting also approved maximum use of video and teleconferencing for official business and a ban on official dinners, except necessary dinners hosted in honour of foreign delegations. It was also decided that unnecessary expenditure would be avoided in government-sponsored seminars, training programmes and conferences.

The meeting decided to continue implementation of the single-dish policy at weddings and other functions.

Under the approved measures, shops, markets, shopping malls and other general business centres would close by 9 p.m., while marriage halls and venues for other functions would close by 10 p.m. Restaurants, cafes, food outlets and standalone fruit and vegetable shops would close by 11 p.m. Pharmacies, medical centres, hospitals, bakeries, petrol and CNG stations, electric vehicle charging stations, gyms, sports facilities, IT companies and call centres remain exempt from the specified closing-time restrictions.

The prime minister was informed that the committee constituted to monitor austerity and fuel conservation measures would obtain implementation reports from ministries, divisions, departments, government organisations and provincial governments.

The committee would identify non-compliance and impediments, recommend corrective measures and submit a weekly progress report to the prime minister.

The prime minister directed that the austerity measures be implemented without discrimination and all possible steps be taken to conserve energy and fuel alongside reducing government expenditure.

The federal government has already approved continuation of austerity measures implemented during fiscal year 2026-27. The measures would also apply to attached departments of the federal government, state-owned enterprises, statutory bodies and regulatory authorities.

Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar, Federal Ministers Ahsan Khan Cheema, Ali Pervaiz Malik and Attaullah Tarar, and senior officials concerned attended the meeting.