The Government of Pakistan has introduced several austerity and fuel conservation measures in response to economic challenges and rising energy costs. These steps aim to reduce unnecessary government expenditure, promote efficient use of resources, and ensure financial discipline across federal and provincial institutions. The policies focus on reducing fuel consumption, limiting administrative expenses, and encouraging responsible public spending.
Reduction in Fuel Provision for Official Vehicles
One of the major steps taken by the government is the 50% reduction in fuel provision for official vehicles for a period of two months. This measure will apply to all government functionaries serving in federal and provincial establishments. However, operational vehicles such as buses, ambulances, and motorbikes have been exempted because they are essential for public services and emergency response.
Grounding of Government Vehicles
In addition to reducing fuel supply, the government has directed that 60% of official vehicles should remain grounded for the next two months. This measure will help reduce fuel consumption and maintenance costs. To manage transportation needs, departments are encouraged to promote car-pooling systems among officials.
Voluntary Salary Waiver by Ministers
As part of the austerity policy, Cabinet Ministers, Ministers of State, Advisors, and Special Assistants to the Prime Minister have agreed to voluntarily give up their salaries and allowances for two months. This initiative demonstrates leadership responsibility and shows that the government leadership is willing to share the financial burden during challenging economic times.
Salary Reduction for Legislators
Members of both Federal and Provincial Legislatures will also contribute to the austerity drive. A 25% voluntary reduction in their salaries and allowances will be implemented for two months. This step is intended to reduce public expenditure and promote financial responsibility among elected representatives.
Salary Contribution from Senior Government Officers
Government officers in BS-20 and above, earning PKR 300,000 or more per month, have been encouraged to voluntarily forgo two days of their salary. This measure is designed to generate additional savings for the national treasury. However, officials working in the health and education sectors are exempted to ensure that essential services are not affected.
Reduction in Non-Employee Related Expenditures
The government has announced a 20% reduction in the Non-ERE (Non-Employee Related Expenditure) budget for the fourth quarter of the financial year 2025–26. Non-ERE expenses include operational costs such as maintenance, utilities, and administrative expenditures. Reducing these costs will help control government spending.
Ban on Purchase of New Vehicles
Another important measure is the complete ban on the purchase of new government vehicles until June 2026. This restriction is intended to prevent unnecessary capital expenditures and encourage departments to utilize existing resources efficiently.
Ban on Purchase of New Durables
The government has also placed a complete ban on the purchase of new durable items such as furniture and equipment. However, IT-related procurements may still be allowed after careful scrutiny by the National Information Technology Board (NITB) and approval from the designated Austerity Committee.
Restrictions on Official Foreign Travel
To reduce travel expenses, the government has imposed a complete ban on foreign travel for official visits by ministers, parliamentarians, and government officials except for obligatory visits. When travel is unavoidable, officials will be required to travel only in economy class.
Rightsizing of Government Institutions
The government has decided to continue its rightsizing exercise within federal institutions. This initiative focuses on improving efficiency, reducing unnecessary positions, and setting clear savings targets for future budgets.
Promotion of Virtual Meetings
Physical meetings involving travel and accommodation costs have been discouraged. Government departments have been instructed to conduct meetings through online platforms and teleconferencing. This will help reduce travel expenses and promote digital governance.
Ban on Official Dinners and Government Events
The government has also imposed restrictions on official dinners and hospitality events funded by public money. Only dinners hosted for visiting foreign delegations will be allowed. Furthermore, seminars, conferences, and training programs funded by the government will require prior approval from a designated committee.
Work From Home and Four Day Workweek
To conserve fuel and reduce commuting, the government has introduced work-from-home arrangements for up to 50 percent of staff on an alternate-day basis. In addition, government offices will observe a four-day workweek, although this rule does not apply to the banking sector and essential services.
Measures for Educational Institutions
Special arrangements have been made for the education sector. Schools will observe Spring Holidays from 16 March 2026 to 31 March 2026, while examinations will continue as scheduled. Colleges and universities will conduct 100 percent online classes during this period to minimize transportation and fuel consumption.
Speed Limits and Restrictions on Marriage Events
As part of fuel conservation efforts, the government has reduced speed limits on major roads. On motorways, vehicles will be required to maintain speeds between 90 and 100 km/h, while on highways the speed limit will be between 65 and 80 km/h. Lower speeds can improve fuel efficiency and enhance road safety.
Limitation on Guests at Marriage Functions and Parties
In addition, restrictions have been introduced for social gatherings. Marriage functions and parties will be limited to a maximum of 200 guests, and organizers must follow a single-dish policy. These measures aim to discourage unnecessary extravagance, reduce food wastage, and promote simplicity in social events.
