The Government of Pakistan has officially triggered a sweeping series of austerity and fuel conservation measures in response to the tightening global and regional economic climate. Under the direct orders of the Prime Minister, these new protocols are set to fundamentally alter the operational landscape of federal and provincial establishments. The directive, issued under notification No.7-2/2026-Min.I., aims to curb public expenditure and reduce the national fuel bill through a combination of mandatory budget cuts, salary waivers, and a significant shift toward digital-first workflows. These measures apply across the board, encompassing the Legislature, Judiciary, Defence Organisations, and all state-owned enterprises.
A primary pillar of this strategy is the immediate reduction of fuel provision for official vehicles by fifty percent for the next two months. This restriction targets government functionaries across federal and provincial levels, though operational assets like ambulances, buses, and motorbikes remain exempt. Furthermore, sixty percent of the official fleet is to be grounded immediately, with Principal Accounting Officers tasked to enforce car-pooling to maintain mobility. To lead by example, members of the Federal and Provincial Cabinets, including Ministers and Special Assistants, have pledged to voluntarily waive their salaries and allowances for a sixty-day period. Additionally, a twenty-five percent voluntary salary cut has been requested from members of the legislatures, while high-ranking officials earning over PKR 300,000 are encouraged to forgo two days of pay.
The digital transition is perhaps the most visible change for the public sector. The government has mandated a transition to virtual platforms for all official business, placing a strict ban on physical meetings. Teleconferencing is now the standard to eliminate travel and lodging costs. In a move that mirrors the evolution of the modern workspace, a four-day workweek has been introduced for public sector operations, complemented by a work-from-home arrangement for up to fifty percent of staff on an alternate-day basis. While these changes do not apply to essential services or the banking sector, they represent a massive leap toward a digital-centric governance model. The private sector is also being strongly advised to mirror these remote work and scheduling adjustments to ensure a unified national effort in energy conservation.
Educational institutions are also transitioning to a digital-only environment. While schools will observe spring holidays starting March 16, 2026, all higher education institutions, including colleges and universities, are directed to shift to one hundred percent online classes during this window. This move is designed to reduce the daily commute of millions of students and faculty members. To further support the austerity drive, a complete ban on the purchase of new vehicles and durables remains in effect until June 2026. Notably, any necessary IT procurements must now undergo rigorous scrutiny by the National Information Technology Board (NITB) and receive specific approval from the Austerity Committee before proceeding.
Further restrictions have been placed on international and local administrative activities. All foreign travel for official visits is banned, with rare exceptions for obligatory duties. When travel is necessary, all government functionaries and ministers must fly economy class. Domestic protocols have been simplified as well, with a total ban on official dinners except for visiting foreign delegations. Public gatherings, including weddings, are now restricted to 200 guests with a single-dish policy. Even road safety regulations have been adjusted for fuel efficiency, with speed limits on motorways reduced to a range of 90 to 100 km/h. These comprehensive measures, effective immediately, signal a period of intense fiscal discipline as the country navigates its current economic challenges.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem