The federal government has introduced a new austerity plan to reduce fuel use and control public spending. The measures were announced amid rising petroleum prices and ongoing pressure on energy markets.

Under the new measures, fuel allocations for most government vehicles will be reduced by 50 percent for three months. The reduction applies mainly to administrative and non-operational vehicles. Operational vehicles of the armed forces, civil armed forces and law enforcement agencies are exempt.

Vehicles used for essential services and the Federal Board of Revenue are also exempt. Development projects will also remain outside the fuel reduction measures. The government said the restrictions are aimed at conserving fuel and reducing unnecessary expenditure.

The austerity plan also includes a complete ban on purchasing government vehicles. The purchase of other durable goods has also been restricted. IT-related equipment will remain exempt from this procurement ban.

Foreign visits and travel by government officials will remain restricted for three months. Some specific categories of travel will be exempt from the restrictions. When foreign travel is unavoidable, ministers and other officials will be required to travel in economy class.

Government departments have also been advised to use video conferencing for meetings. This measure is intended to reduce travel costs and fuel consumption. Intra-city meetings are excluded from the teleconferencing preference.

The government has also prohibited official dinners, except those arranged for visiting foreign delegations. Government-funded seminars, training sessions and conferences have also been restricted.

If such events are unavoidable, departments have been directed to use government-owned auditoriums and committee rooms. This is expected to reduce spending on private venues and related services.

Another measure requires only one dish at marriage-related functions and events. The government has also retained revised closing hours for commercial establishments.

Under the notified timings, shops, markets and shopping malls will close by 9pm. Wedding halls and similar event venues will close by 10pm. Restaurants, cafes and food outlets will remain open until 11pm. Takeaway and home delivery services are exempt from the restaurant closing restriction.

Several essential businesses will remain exempt. These include pharmacies, hospitals, clinics, medical laboratories and petrol stations. Bakeries, tandoors, dairy shops and electric vehicle charging stations are also exempt.

The government has further ordered a 5 percent reduction in non-employee-related expenditure during the 2026-27 financial year. The reduction will be applied through monthly deductions. The measure will also cover Pakistan’s foreign missions, while certain essential obligations remain protected.

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Provincial and regional governments have also been asked to consider similar measures. The new austerity plan will remain subject to exemptions where necessary. Requests for exemptions will be considered on a case-by-case basis.