Pakistan Orders Fuel Cuts, Vehicle Purchase Ban & Foreign Travel Curbs In New Austerity Measures

Pakistan has announced a fresh round of austerity measures, including a ban on vehicle purchases and foreign travel by ministers and government officials. The Federal Government, through a notification issued by the Cabinet Division on September 17, directed the immediate implementation of a series of fuel conservation and austerity measures for three months and for the financial year 2026-27.

The measures include a 50% reduction in fuel provision for official vehicles 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 excluded, although the measure will apply to administrative or non-operational formations of these entities.

The government has also ordered a 5% reduction in the Non-ERE Budget for the entire financial year 2026-27, with deductions to be made monthly. The measure will also apply to foreign missions and officers posted there, while rents, educational fees and medical care arrangements will continue to be met.

The measures come amid Pakistan’s discussions on providing military assistance to Saudi Arabia and Türkiye in case of an attack. Pakistan’s defence minister had also said, following Houthi attacks, that the time has come to implement the Mecca pact.

Vehicle And Foreign Travel Bans

The notification imposes a complete ban on the purchase of vehicles of all types and a ban on purchasing all durables, except IT procurements. Both measures will not apply to development projects.

Foreign visits and travel have also been prohibited for three months, including obligatory visits, with exceptions for scholarships offered by international development partners, training and courses arranged through the Economic Affairs Division, and programmes under institutional agreements of the Government of Pakistan.

For unavoidable visits, ministers, advisers, ministers of state, special assistants to the prime minister, parliamentary functionaries and government officials will have to travel in economy class. Pakistani ambassadors and high commissioners will represent the country at obligatory and important events.

Meetings And Official Events

The government has directed that meetings should preferably be held through teleconferencing, except for intra-city meetings. Official dinners will also be prohibited, except for visiting foreign delegations.

Government-funded official seminars, trainings and conferences have been banned. Where such events are unavoidable, government facilities such as auditoriums and committee rooms will have to be used.

The notification also directs that only a single dish should be served at marriage-related functions and events.

Markets To Follow Existing Closing Timings

The Cabinet Division said the market closing timings notified on June 19, 2026, would continue to apply.

Shops, markets, shopping malls, bazaars, departmental stores, grocery stores, general stores and kiryana stores will close at 9 PM. Marriage halls, marquees and other commercial places where festive events are held will close at 10 PM.

Restaurants, cafes, eateries and food outlets, along with standalone fruit and vegetable shops, will close at 11 PM. Takeaway and home delivery services will remain exempt.