Pakistan Reinstates Fuel Austerity Measures
The federal government of Pakistan has reintroduced a comprehensive set of austerity measures aimed at conserving fuel amid escalating tensions in the Middle East. The Cabinet Division issued a notification on Thursday that will take effect immediately, imposing strict market closing times and cutting fuel allowances for official vehicles by 50% for a period of three months.
Under the new directive, shops, markets, malls, bazaars, and grocery stores must close by 9 pm, while marriage halls and other festive venues are required to shut by 10 pm. Restaurants, cafés, and food outlets will close by 11 pm, with takeaway and home‑delivery services exempted. Exemptions also extend to pharmacies, medical facilities, laboratories, hospitals, bakeries, tandoors, dairy shops, fuel and CNG stations, electric vehicle charging stations, gyms, sports facilities, IT companies, and call centres.
In addition to market curfews, the government will reduce fuel provision for official vehicles by half for three months. Vehicles used by the armed forces, civil armed forces, law enforcement, essential services, and the Federal Board of Revenue are exempt, as are those used for development projects. The same 50% cut does not apply to foreign missions, although their officials will still be subject to the overall austerity framework.
Other measures include a 5% cut in the budget for non‑employee related expenditures for FY2026‑27, a complete ban on the purchase of all vehicle types (except for development projects), and a prohibition on buying durable goods except for IT equipment and services. The government also imposes a three‑month ban on foreign visits and travel, with limited exceptions for scholarships and training programmes.
Official meetings will largely shift to teleconferencing, and no official dinners will be hosted unless a foreign delegation is present. Government‑funded seminars, trainings, and conferences are also banned, though unavoidable events may use government facilities. Requests for exemptions can be considered by a Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures, which will forward recommendations to the Prime Minister.
These measures echo earlier austerity steps taken in March to mitigate the impact of the US‑Iran conflict, which included a 50% cut in fuel allowances for lawmakers and a partial work‑from‑home policy. The new restrictions come as Middle Eastern hostilities threaten key oil supply routes, raising fuel prices and prompting the Pakistani government to tighten domestic consumption.
