Govt mulls fresh austerity measures

Our Correspondent July 22, 2026 Less than a minute read

EASING PAYMENT OBLIGATIONS: Sources said Pakistan was working on multiple options to extend the longevity of its short-term external debt and also stagger the upcoming payments of energy debt being obtained by Chinese firms to set up power plants under CPEC. PHOTO:FILE

ISLAMABAD:

The federal government has begun consultations on possible austerity measures in view of the Iran-US conflict as officials consider a range of cost-cutting steps that could be implemented if tensions between the two countries escalate further, government sources said on Tuesday.

According to the sources, the government is expected to decide on reimposing a number of administrative restrictions as part of its contingency planning.

Among the proposals under consideration is a reduction in the number of weekly working days, although no final decision has yet been taken.

The government is also considering limiting the number of official vehicles and reducing petrol and diesel consumption by government departments as part of the proposed austerity measures.