Govt announces fresh austerity, fuel conservation measures with immediate effect

The Pakistani government has announced new austerity and fuel conservation measures that take effect immediately, according to a Cabinet Division notification released on Thursday. The measures, endorsed by the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures, include a 50% reduction in fuel provision for official vehicles over three months.

The exemption list includes armed forces, law enforcement agencies, essential services, and the Federal Board of Revenue, though vehicles in administrative or non-operational roles are affected. The Non-ERE Budget for FY 2026-27 will decrease by 5% monthly, and this reduction extends to foreign missions and officials stationed abroad, although their living expenses remain covered.

A full ban on vehicle and durable purchases, excluding IT procurements, and a three-month travel ban, even for obligatory visits, are also in place, with exceptions for scholarships, training, and institutional agreements. Government ambassadors and high commissioners will represent Pakistan at foreign events, while ministers and officials must travel in economy class for unavoidable trips.

Meetings will be conducted via teleconference unless intra-city, and official dinners will only be held for visiting foreign delegations. Seminars, trainings, and conferences are prohibited, and official events must use designated venues. Government-funded functions will serve only one dish, and foreign missions can request exemptions case-by-case.

Provincial and regional governments are encouraged to implement similar measures. The notification was issued by Cabinet Secretary Kamran Ali Afzal.