Federal Government Announces Sweeping Austerity Measures: Markets to Close at 9 PM, Official Fuel Quotas Slashed by 50%
ISLAMABAD: The federal government has announced a comprehensive package of new austerity measures as it takes a decisive action to cut public spending, save national resources and help ensure fiscal discipline.
With the new order, the fuel allocation for all government official automobiles has been lowered by 50 percent for three months. The cuts in fuel are not applicable on operational vehicles, essential services and transport provided for development projects.
Elimination of luxury purchases, foreign travel restrictions and economy class travel.Banning luxury purchases, foreign travel restrictions and economy class travel.
The non-ARE budget reduction is 5 percent for the 2026–27 fiscal year as part of the fiscal overhaul. In addition, the procurement of all new vehicles has been completely banned, and a blanket restriction has been imposed on the procurement of durable goods, except for acquisitions related to IT necessary for the company’s operations.
In addition, the federal government has imposed a three-month ban on all travel and tourism activities by foreign officials with some sectors and necessary official delegations still being allowed to travel. Ministers, advisors and government officials will be very strictly required to travel economy class in the event of unavoidable foreign travel.
The Three D’s, which include Mandatory Video Conferencing, Ban on Official Dinners and One-Dish Policy.The Three D’s: Mandatory Video Conferencing, Ban on Official Dinners, and One-Dish Policy.
In an attempt to further reduce administrative bloat, government departments have been instructed to use video conferencing for all government business. Official dinners (excluding foreign delegation receptions) and government-sponsored seminars, training and conferences are totally banned.
Government auditoriums and committee rooms are now the only spaces government can use for unavoidable official events. Further, weddings and other private events in all areas have been curtailed to provide one dish only.
Information on the time required for Markets, Wedding Halls, and Restaurants
In the new energy conservation and market regulation framework:
The markets, shopping malls and bazaars will be shut by 9.00 PM.
Wedding halls and marquees should close at 10:00 PM.
Restaurants, cafes, food outlets will close at 11:00 PM (but take-away, home delivery exempt).
Exempted Essential Sectors
The timing restriction exempts essential services and public convenience providers such as pharmacies, hospitals, clinics, medical laboratories, petrol pumps, bakeries, tandoors, milk and dairy shops, electric vehicle charging stations and gyms.
Individual exemptions from these austerity measures will be considered on a case-by-case basis, the government said, and provincial and regional governments are being urged to implement parallel austerity plans.