Govt cuts fuel allocations for official vehicles by 50% amid fresh austerity measures

Reduction will remain in place for three months, with exemptions for operational vehicles and development projects

The federal government on Thursday announced a fresh set of fuel conservation and austerity measures, including a 50 per cent cut in fuel allocations for official vehicles and a five per cent reduction in non-employee-related expenditure for the current fiscal year.

The measures, notified by the Cabinet Division with immediate effect, will remain in force for varying periods. The fuel reduction and restrictions on foreign travel will apply for three months.

According to a notification issued by Cabinet Secretary Kamran Ali Afzal, fuel allocations for official vehicles will be reduced by 50 per cent for three months.

Operational vehicles of the armed forces, civil armed forces, law enforcement agencies, essential services and the Federal Board of Revenue have been exempted from the measure. However, the restriction will apply to vehicles used by the administrative and non-operational formations of these entities.

Development projects have also been exempted from the fuel conservation measure, according to the notification.

The Federal Government has announced a series of fuel conservation and austerity measures, including a fifty percent reduction in the provision of fuel to official vehicles, with immediate effect@GovtofPakistan #News #RadioPakistan https://t.co/TKgPaNJ4dw

— Radio Pakistan (@RadioPakistan) September 17, 2026

The government also ordered a 5% monthly reduction in the non-employee-related expenditures (Non-ERE) for the current financial year.

The notification outlined that the arrangement applies to all foreign missions and occupational groups posted abroad.

“This measure will also apply in the case of foreign missions, and the officers/officials belonging to any occupational group or service, posted in these missions; however, obligations relating to their rents, educational fees and medical care arrangements will be met,” the notice said, adding that the measure was “not applicable” in the case of development projects.

Furthermore, the government announced a complete ban on the purchase of vehicles of all types.

The procurement of durable goods has also been deemed prohibited, except for information technology-related purchases. Once again, both restrictions do not apply to development projects.

The notification also imposed a complete ban on foreign visits and travel for three months, including obligatory visits. In cases where foreign representation is considered compulsory or important, Pakistan's ambassador or high commissioner concerned was notified to represent the country.

“Except in the case of scholarships offered by international development partners, training and courses arranged through the Economic Affairs Division or under institutional agreements of the Government of Pakistan.”

Government representatives and executives have been asked to travel only in economy class in cases where foreign travel is “unavoidable”.

The notification outlined that the austerity measure applied to ministers, advisers, ministers of state, special assistants to the prime minister, parliamentarians and government functionaries.

In addition to the above arrangements, government departments have been directed to preferably organise teleconferences, except for intra-city meetings.

The notification further prohibited all official seminars, training sessions and conferences “funded by the government”. In case of inevitability, departments have been directed to use government-owned venues, including auditoriums, committee rooms and other official facilities.

The cabinet also proscribed holding official dinners while only allowing concession in case of foreign delegations.

Moving on to public prohibitions, the notification also stated that only a single dish would be allowed for serving at all marriage-related functions and events.

Market timings retained

The market closing timings notified by the Cabinet Division on June 19 have been extended to remain in force.

As per the notification, shops, markets, shopping malls, bazaars, as well as departmental, grocery, general and kiryana stores have been asked to shut down at 9pm on all days of the week.

By 10pm, marriage halls, marquees, and all other commercial event venues have been ordered to close.

Restaurants, cafés, eateries, and food outlets, along with standalone fruit and vegetable shops, may operate until 11pm. However, delivery and takeaway services have been exempted to follow time allocation.

“Pharmacies, medical and medical supplies stores; medical laboratories, clinics, hospitals. Standalone bakeries, standalone tandoors; standalone milk and dairy shops. Fuel/CNG pumps, electrical vehicle charging stations. Gyms, sports facilities and sports/padel courts. IT Companies and Call Centres," are exempt from fixed operation timings as per the notification.

The notification said requests for exemption from any of the austerity and fuel conservation measures could be considered on a case-by-case basis by the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures.

The committee has been tasked to submit its recommendations to the Prime Minister for approval.

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It further clarified that exemptions granted by the committee would not require a separate exemption from the Austerity Committee constituted by the Finance Division from time to time.

The provincial and regional governments have also been advised to consider adopting similar austerity and fuel conservation measures.

Background

The latest austerity measures come against the backdrop of a fuel conservation drive launched by the federal government earlier this year as international energy prices surged amid escalating tensions in the Middle East. The war between the United States, Iran and Israel sent global energy prices up.

In March, the government introduced a broad package of energy conservation and cost-cutting measures aimed at reducing fuel consumption and containing pressure on the economy that were later extended up to June.

The drive included a 50% reduction in fuel allocations for government vehicles, grounding 60% of the official fleet, restrictions on foreign travel and a ban on the purchase of vehicles and several categories of equipment. The government also announced reductions in official expenditure and changes to working arrangements in the public sector.

On June 10, the government extended several austerity measures until June 30 and revised the closing time for standalone grocery and neighbourhood stores.

Nine days later, the government announced a sharp reduction in domestic petroleum prices following an improvement in regional conditions and a decline in international oil prices. The prime minister said the federal government had used savings generated through austerity measures, alongside development budget allocations, to help provide relief to consumers.

Then on June 21, the government formally withdrew most of the austerity measures. Full petrol allowances for officials were restored, and up to 60% of the government vehicle fleet was allowed to return to operation. However, restrictions on the operating hours of markets, shopping malls, wedding halls and restaurants remained in place.

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The government’s renewed austerity push now comes amid another sharp deterioration in the international fuel market. In a report published on September 15, The Express Tribune said the government was considering bringing back some of the earlier fuel conservation measures as renewed conflict and disruption to oil supply routes in the Middle East pushed up petroleum prices.

The renewed pressure coincided with a sharp increase in domestic petroleum prices.

Yesterday, the government, with the approval of the prime minister, also introduced a targeted fuel-relief scheme for motorcycles, rickshaws, Qingqi rickshaws and cars with engines of up to 800cc.