ISLAMABAD: Amid rising petroleum product prices across the country, the federal government has formally notified a comprehensive austerity campaign aimed at reducing public-sector and commercial expenditure.
The measures are primarily focused on ensuring the efficient use of national resources and conserving energy amid the country’s ongoing economic challenges.
Three-Month Austerity Drive
The special austerity campaign will initially remain in effect for three months. During this period, strict restrictions and regulations will be implemented across various sectors.
Business and Commercial Timings
To help address the energy crisis, the operating hours of markets, commercial establishments and entertainment venues have been reduced.
Markets and shopping malls: All shops, markets and shopping malls across the country will close at 9pm every day.
Wedding halls and events: Wedding functions and other commercial activities must conclude by 10pm.
Hotels and restaurants: Hotels, restaurants and cafés will close by 11pm. However, takeaway and home-delivery services will be exempt from the closing-time restriction.
One-dish policy at weddings: Guests at wedding functions will be served only one dish as part of the government’s austerity measures.
Businesses and Services Exempted
To ensure that essential services and facilities remain available without interruption, several businesses and institutions have been exempted from the restrictions on operating hours.
These include:
Pharmacies, medical laboratories, clinics and hospitals
Tandoors, bakeries, milk shops and dairy outlets
Petrol and CNG stations, as well as electric vehicle (EV) charging stations
Gyms, sports centres, paddle courts, IT companies and call centres
Restrictions on Government Affairs and Official Travel
The government has also introduced strict measures to reduce expenditure from the national exchequer.
Foreign travel: All non-essential official visits and overseas government travel will be prohibited for the next three months. In exceptional and unavoidable circumstances, ministers, advisers and government officials will be required to travel in economy class only.
Online meetings: Government departments have been directed to hold official meetings through video conferencing wherever possible, instead of using conventional in-person meetings.
Dinners, seminars and conferences: Government-funded dinners, seminars, training programmes and conferences will not be permitted. However, dinners hosted in honour of foreign dignitaries will be exempt. Where an official event is unavoidable, it must be held at a government auditorium or committee room.
IT equipment and other purchases: The purchase of essential IT equipment will remain permitted, while the procurement of other durable and luxury goods will be prohibited.
Cuts in Government Vehicles and Fuel
As part of the austerity drive, 50% of the government vehicle fleet will be grounded, meaning those vehicles will be taken out of use.
The monthly fuel allocation for government vehicles will also be reduced by 50%.
However, vehicles used by the armed forces, civil armed forces, law-enforcement agencies, operational vehicles of the Federal Board of Revenue (FBR), and vehicles required for other essential services will be exempt from these reductions.
Budget Cuts and Ban on New Vehicles
The government has decided to reduce the Non-ERE budget for the fiscal year 2026-27 by 5%.
In addition, all government departments will be barred from purchasing new official vehicles.
Provincial Implementation and Exemption Mechanism
The federal government’s measures also indicate that provincial and regional governments may consider adopting similar austerity measures within their respective jurisdictions.
Requests for exemptions from the newly introduced restrictions will be considered on a case-by-case basis.
A special committee will review such requests and submit its recommendations directly to the prime minister for approval.
