Pakistan Government Launches New Austerity Scheme to Cut Fuel Use and Public Spending

Pakistan Government Launches New Austerity Scheme, Cuts Official Fuel Use by 50%

ISLAMABAD: The Pakistan Government Launches New Austerity Scheme to reduce public expenditure, control petroleum consumption and promote energy conservation across government departments and commercial activities. Under the new measures, the federal government has ordered a 50 percent reduction in fuel use for government vehicles involved in administrative and non-operational activities.

Operational vehicles, armed forces, civil armed forces, law-enforcement agencies, essential services and the Federal Board of Revenue (FBR) have been exempted from the fuel restrictions.

Pakistan Government Launches New Austerity Scheme With Strict Spending Controls

As part of the new austerity measures, the government has restricted the purchase of new vehicles and durable goods. However, IT-related procurement has been exempted. Government departments have also been advised to use video conferencing instead of physical meetings whenever possible.

Official foreign travel has been restricted for three months, subject to specified exemptions. Where overseas travel is unavoidable, ministers, advisers and government officials will be required to travel in economy class.

The measures also prohibit government-funded official dinners, except those arranged for foreign delegations. Seminars, conferences and training programmes have been restricted, while essential events are encouraged to take place in government auditoriums and committee rooms.

Markets, Restaurants and Wedding Halls Face New Timings

Under the energy conservation measures, shops, markets, shopping malls and bazaars will close by 9pm, while wedding halls, marquees and other event venues will close by 10pm. Restaurants, cafés and food outlets will close by 11pm, with takeaway and home-delivery services exempt.

Hospitals, pharmacies, clinics, laboratories, petrol pumps and other essential services will remain exempt from the restrictions.

The government has additionally ordered a 5 percent reduction in non-employee expenditure on a monthly basis throughout the financial year. Wedding functions will also be limited to one dish under the latest cost-control measures.

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