ISLAMABAD: The federal cabinet has approved the continuation of previous austerity measures for fiscal year 2026-27, re-enacting old laws aimed at curbing government expenditure.
A notification issued the other day outlined sweeping restrictions across ministries, divisions, and state-owned enterprises, even as the government faces mounting criticism for its own spending habits.
Officials insist the austerity measures reflect the government’s commitment to fiscal discipline.
However, critics point out the stark contrast between the austerity drive and the administration’s own conduct — including lavish foreign tours, a bloated cabinet, and high-profile events that undermine claims of belt-tightening.
Observers argue that while directives may reduce departmental expenses, they fail to address the credibility gap between official pronouncements and political practice.
According to the latest austerity directive, there will be a ban on the purchase of new vehicles, creation of posts, and fresh recruitments. Procurement of machinery, equipment, and non-essential goods has also been prohibited, except for medical equipment. The notification further restricts non-essential official visits, conferences, and training, while ordering cuts in office expenses, hospitality, events, printing, and advertisements.
The measures also propose reduced consumption of petrol and diesel, downsizing of VVIP convoys, and tighter scrutiny of new project approvals. Rent, repairs, and other non-essential expenditures are to be controlled under the plan.
All departments, statutory bodies, and regulatory authorities have been directed to immediately communicate these instructions to their subordinate offices, with the Austerity Committee empowered to grant exemptions on a case-by-case basis.
