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Pakistan announces sweeping austerity measures: 50% fuel cut, vehicle purchase ban, foreign travel freeze

ISLAMABAD: Pakistan’s federal government unveiled a broad package of austerity and fuel conservation measures Friday, ordering a 50% cut in fuel for official vehicles, a complete ban on vehicle and durable goods purchases, and a three-month freeze on foreign travel, effective immediately.

The Cabinet Division issued the notification on Sept. 17, following recommendations from the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures.

Fuel provisions for official vehicles will be reduced by half for three months. Operational vehicles of the Armed Forces, Civil Armed Forces, Law Enforcement Agencies, Essential Services and the Federal Board of Revenue are excluded, though the measure applies to administrative or non-operational formations of those entities. Development projects are exempt.

The government also ordered a 5% reduction in the Non-ERE Budget for fiscal year 2026-27, with monthly deductions. Foreign missions and their officers will also be subject to the cut, but rent, educational fees and medical care obligations will continue to be met. Development projects remain exempt.

A complete ban is imposed on purchasing vehicles of all types and on all durables except IT equipment. Both bans exempt development projects.

All foreign visits and travel are banned for three months, including obligatory visits. Exceptions include scholarships from international development partners, training and courses arranged through the Economic Affairs Division, or under institutional agreements of the Government of Pakistan. Pakistan’s ambassador or high commissioner will represent the country at obligatory and important events.

When travel is unavoidable, all ministers, advisors, ministers of state, special assistants to the prime minister, and parliamentary and government functionaries must fly economy class.

Meetings should be held via teleconferencing except when participants are in the same city. No official dinners may be hosted except for visiting foreign delegations.

Government-funded official seminars, trainings and conferences are prohibited. If such events are unavoidable, they must be held at government venues such as auditoriums, committee rooms and other official facilities.

A single dish will be served at all marriage-related functions and events.

Previously notified market closing times remain in effect: shops, markets, shopping malls, bazaars, and departmental, grocery, general and kiryana stores must close at 9 p.m. daily. Marriage halls, marquees and other commercial festive event venues must close at 10 p.m. Restaurants, cafes, eateries, food outlets and standalone fruit and vegetable shops must close at 11 p.m., with takeaway and home delivery exempt.

Requests for exemption may be considered case-by-case by the monitoring committee, which will submit recommendations to the prime minister for approval. Exemptions granted by the committee will not require further approval from the Finance Division’s Austerity Committee.

Provincial and regional governments may consider adopting similar measures.

The notification was signed by Cabinet Secretary Kamran Ali Afzal and distributed to federal ministers, advisors, secretaries, provincial chief secretaries, inspectors general of police, high court registrars and other senior officials.

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