The federal government has reduced fuel provision for official vehicles by 50% for a period of three months as part of a new package of fuel conservation and austerity measures. The measures have taken effect immediately and also include a complete ban on the purchase of vehicles and durable goods by government departments during the specified period.
The fuel reduction will apply to official vehicles across government formations, although several categories have been excluded from the measure because of their operational responsibilities. Armed Forces, Civil Armed Forces, Law Enforcement Agencies, Essential Services and operational vehicles of the Federal Board of Revenue are exempt from the 50% fuel reduction. However, administrative and non-operational formations within these organizations will remain subject to the fuel cut.
Development projects have also been excluded from the scope of the new austerity measures. This means that the restrictions announced for fuel consumption, purchases and other government expenditures will not apply to development projects, allowing ongoing development-related activities to continue outside the newly imposed measures.
Alongside the fuel reduction, the federal government has ordered a 5% cut in the Non-Development Non-ERE Budget for fiscal year 2026-27. The reduction will be deducted on a monthly basis and will also extend to Pakistan’s foreign missions and officers posted abroad. Despite the budget reduction, existing obligations related to rent, education and medical requirements will continue to be met.
The government has also imposed a complete ban on foreign visits and travel for three months. The restriction includes government officials and functionaries, with limited exceptions for scholarships offered by international development partners and training programmes arranged through the Economic Affairs Division or under government institutional agreements. During this period, ambassadors and high commissioners will represent Pakistan at events where official representation is mandatory.
For foreign travel that cannot be avoided under the permitted exceptions, ministers, advisers, ministers of state, special assistants to the Prime Minister and other government functionaries will be required to travel in economy class. The measure is intended to limit government expenditure associated with official travel while maintaining representation where travel is considered necessary.
The new package also introduces restrictions on meetings and official events. Government departments have been directed to make greater use of teleconferencing for meetings, except where meetings involve participants within the same city. Official dinners have also been prohibited, with an exception for dinners arranged for visiting foreign delegations.
Government-funded seminars, training sessions and conferences have also been prohibited under the austerity measures. Where such activities are unavoidable, they are required to be conducted at government venues rather than through arrangements involving additional expenditure on external facilities. Marriage-related official functions have also been subjected to a single-dish requirement.
The government has simultaneously retained the market closing timings that were notified in June 2026. Shops, markets, shopping malls, bazaars and departmental, grocery, general and kiryana stores will continue to close at 9:00 PM on all days. Marriage halls, marquees and other venues used for festive events will close at 10:00 PM.
Restaurants, cafés, eateries and food outlets will remain subject to an 11:00 PM closing time. Standalone fruit and vegetable shops will also follow the 11:00 PM timing, while takeaway and delivery services remain exempt from the restriction. A number of essential and specialized businesses have been excluded from the closing-time requirements altogether.
Pharmacies, medical stores, laboratories, clinics and hospitals are exempt from the notified closing timings. Standalone bakeries, tandoors, milk and dairy shops, fuel and compressed natural gas pumps, electric vehicle charging stations, gyms and sports facilities will also remain exempt. Information technology companies and call centres are likewise outside the closing-time restrictions.
The government has also established a mechanism for considering requests for exemptions from the newly announced austerity and fuel conservation measures. Such requests may be reviewed on a case-by-case basis by the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures. Any exemption granted through this process will require approval from the Prime Minister.
The government has further clarified that exemptions approved through the designated committee will not require additional clearance from the Finance Division’s separate Austerity Committee. This is intended to provide a defined process for dealing with situations where departments or institutions believe that an exemption from a particular measure is necessary.
The latest package combines fuel conservation with restrictions on government procurement, travel, events and non-development spending. The 50% reduction in official vehicle fuel allocations will remain in place for three months, while the other measures are intended to reduce government expenditure and conserve resources. Operational formations and development projects have been given specific exemptions, while administrative government activities will remain subject to the broader austerity framework.
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