Thursday, October 8, 2026

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Government Revives ‘Austerity’ amidst Rising Fuel Costs

The federal government on Thursday revived austerity and fuel conservation measures amidst rising global fuel prices due to the Middle East conflict, directing all shops, markets, and shopping malls in Islamabad to shutter at 9 p.m. throughout the week.

While the latest austerity measures are limited to Islamabad, the federal government has encouraged provincial and regional governments to consider adopting similar measures during the crisis.

According to the notification issued by the federal government, marriage halls and marquees must close by 10 p.m., while restaurants and eateries—except for takeaways and deliveries—must close by 11 p.m. It has also imposed single-dish functions for marriage ceremonies.

The notification exempts operations of pharmacies, hospitals, clinics, medical laboratories, standalone bakeries, tandoors, milk and dairy shops, fuel and CNG pumps, electric vehicle charging stations, gyms, sports facilities, I.T. companies and call centers from the time limits.

Government reductions

The government’s notification also cuts official vehicle fuel use by 50%, bans all foreign travel for three months, and imposes a complete ban on vehicle and durable goods purchases. The measures similarly limit government spending through a 5% cut in the non-essential recurring expenditure budget for fiscal year 2026-27.

Official vehicles would receive only half their usual fuel allocation for the next three months, though operational vehicles of the Armed Forces, Civil Armed Forces, law enforcement agencies, essential services and FBR are exempt from this. Administrative and non-operational formations of these entities would however be subject to the cut. Development projects are also exempt from this measure.

A complete ban has been imposed on the purchase of all types of vehicles and durable goods by government departments, with the exception of I.T. procurements. Development projects are also exempt from these bans.

All foreign visits and travel have been completely banned for three months, including obligatory visits. Exceptions apply only to scholarships offered by international development partners and training or courses arranged through the Economic Affairs Division or under institutional agreements. In such unavoidable cases, Pakistan’s ambassador or high commissioner would represent the country at obligatory and important events.

Where foreign travel is absolutely unavoidable, all ministers, advisers, ministers of state, special assistants to the prime minister and parliamentary and government functionaries shall travel only in economy class. Meetings would preferably be held through teleconferencing, except for intra-city meetings. No official dinners would be hosted, except for visiting foreign delegations.

All official seminars, trainings and conferences funded by the government are prohibited, though unavoidable events must be held at government venues such as auditoriums and committee rooms.