The Govt of Pakistan has introduced strict austerity measures to reduce public spending. The decision comes amid rising global oil prices and tensions in the Middle East.
Officials say the new policy aims to control expenses and protect the country’s financial stability. The measures were approved during a high-level meeting chaired by Prime Minister Shehbaz Sharif.
Chief ministers from all four provinces attended the meeting. Leaders from Gilgit-Baltistan and Azad Jammu and Kashmir were also present. The Govt confirmed that the austerity policy will apply to all ministries, departments, and public institutions.
The new measures include restrictions on government spending and operational costs. The Govt has banned the purchase of new goods and vehicles until June 2026.
According to officials, IT equipment purchases will require review by the National IT Board. Approval from a special scrutiny committee will also be necessary.
The Govt has also suspended official foreign travel for cabinet members and public officials. Overseas visits will only be allowed for essential missions. Officials traveling abroad must use economy class.
Another major step includes reducing fuel supply for government vehicles. The Govt has ordered a 50 percent reduction in fuel use for official vehicles for the next two months.
However, operational vehicles such as ambulances and buses are exempt from this decision. Authorities estimate that this step could save about Rs4.5 billion at the federal level.
In addition, the Govt plans to ground around 60 percent of government vehicles during the two-month period. The purchase of new government vehicles will remain banned until June 2026.
The policy also introduces a right-sizing program to improve efficiency in public institutions. The Govt will promote virtual meetings and teleconferencing to reduce administrative costs.
Official banquets have also been suspended under the new policy. Exceptions will only be allowed for visiting foreign delegations.
Seminars, conferences, and training programs organized by government departments will require approval from a special committee. Officials must use government facilities for such events.
The austerity plan also includes salary-related adjustments. Federal and provincial ministers, advisers, and special assistants will voluntarily give up two months of salaries and allowances.
Senior officials in Grade 20 and above will face a two-day salary deduction. This rule applies to those earning more than Rs300,000 per month.
The Govt has also ordered a 20 percent cut in non-development spending for the final quarter of the fiscal year. Officials estimate that these reductions could save about Rs22 billion at the federal level.
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Authorities say the measures are necessary to manage financial challenges and rising energy costs. The Govt hopes these steps will help reduce pressure on the national budget while maintaining essential services.
