Cabinet Division Notifies Tough Austerity Measures With Immediate Effect

ISLAMABAD: The federal government has imposed sweeping austerity and fuel conservation measures with immediate effect, acting on the recommendations of the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures. The Cabinet Division issued Notification No. 7-2/2026-Min.I on September 17, 2026, signed by Cabinet Secretary Kamran Ali Afzal.

Fuel Allocation Halved

Fuel provision for official vehicles has been cut by 50 percent for three months. Operational vehicles of the Armed Forces, Civil Armed Forces, law enforcement agencies, essential services and the FBR are exempt, but the cut will apply to vehicles of their administrative and non-operational formations.

5% Budget Cut

A five percent reduction will be made in the Non-ERE budget for the entire fiscal year 2026-27, deducted on a monthly basis. The cut also covers Pakistan’s foreign missions and officers posted there, though obligations relating to their rent, children’s educational fees and medical care will continue to be met.

Purchase Bans

A complete ban has been placed on the purchase of vehicles of all types, as well as on all durables except IT procurements. The fuel cut, budget reduction and purchase bans will not apply to development projects.

Foreign Travel Frozen

All foreign visits, including obligatory ones, are banned for three months. Exceptions include scholarships offered by international development partners and training or courses arranged through the Economic Affairs Division or under the government’s institutional agreements. Pakistan’s ambassadors and high commissioners will represent the country at obligatory and important events.

Where visits are unavoidable, federal ministers, advisors, ministers of state, special assistants to the prime minister, parliamentary and government functionaries will travel only in economy class.

Meetings, Dinners and Seminars

Meetings will preferably be held via teleconferencing, except for intra-city meetings. No official dinners will be hosted unless foreign delegations are visiting. All government-funded seminars, trainings and conferences are prohibited; where such events are unavoidable, they must be held at government venues such as auditoriums and committee rooms.

Single Dish at Weddings

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

Market Timings Remain in Force

Market closing times notified by the Cabinet Division on June 19, 2026, will continue to apply seven days a week:

• 9:00 PM: Shops, markets, shopping malls, bazaars, departmental, grocery, general and kiryana stores
• 10:00 PM: Marriage halls, marquees and other commercial venues for festive events
• 11:00 PM: Restaurants, cafés, eateries, food outlets and standalone fruit and vegetable shops, with takeaway and home delivery exempt
• Exempt: Pharmacies, medical stores, laboratories, clinics and hospitals; standalone bakeries, tandoors, and milk and dairy shops; fuel/CNG pumps and EV charging stations; gyms, sports facilities and padel courts; IT companies and call centres

Exemptions and Provinces

Requests for exemption from any of these measures may be considered case by case by the monitoring committee, which will forward its recommendations to the Prime Minister for approval. Exemptions granted by this committee will not require separate clearance from the Finance Division’s Austerity Committee, constituted under Cabinet decision No. 34/8/2026 of June 12, 2026, and notified on July 21, 2026.

Provincial and regional governments have been advised to consider adopting similar measures.