Petrol prices push govt to tighten austerity measures, IT sector exempted

The federal government has decided to introduce a fresh set of austerity measures in response to rising petroleum product prices in international markets, including a 50 percent cut in fuel allocations for government vehicles for three months.

Under the measures, fuel allocations for government vehicles will be reduced by half for the next three months. However, operational vehicles of the armed forces, civil armed forces, and law enforcement agencies will remain exempt.

Operational vehicles of essential services and the Federal Board of Revenue (FBR) will also be exempted from the fuel cuts.

The government has further decided to reduce non-ERE (non-Employee Related Expenditure) budgets for the fiscal year 2026-27 by 5%. The cuts will be implemented on a monthly basis.

Government curbs spending, IT sector gets exemption

The government has imposed a complete ban on the purchase of all types of government vehicles, while procurement of durable goods will also remain prohibited, except for IT-related purchases.

The measures also include a three-month ban on official foreign visits and related travel expenditure. Visits undertaken under scholarships, training courses, and institutional agreements will be exempted.

In cases where foreign travel is deemed unavoidable, ministers and government officials will be required to travel in economy class.

Government meetings have also been directed to be held through teleconferencing wherever possible.

The government has prohibited official dinners except those hosted for foreign delegations, while seminars, training programs, and conferences funded through government resources will also be restricted.

For unavoidable events, government auditoriums and committee rooms have been recommended as venues.

The government has also directed that only one dish be served at wedding functions.

As part of broader energy conservation measures, shops, markets, shopping malls, and bazaars will close by 9 pm. Marriage halls, marquees, and other commercial event venues will close by 10 pm, while restaurants, cafes, and food outlets will close by 11 pm.

Takeaway and home-delivery services will be exempt from the specified closing hours.

Pharmacies, clinics, hospitals, medical laboratories, and medical equipment shops will also remain exempt, along with bakeries, milk and dairy shops, fuel stations, and electric vehicle charging stations.

Gyms, sports facilities, IT companies, and call centers have also been exempted from the restrictions.

Requests for exemptions from the austerity measures will be considered on a case-by-case basis, with recommendations to be submitted to the prime minister for approval.

Provincial and local governments may also consider adopting similar austerity measures.

The latest measures come as the government seeks to contain public expenditure and reduce fuel consumption amid higher petroleum prices in international markets.

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