Islamabad: September 17, 2026 :
As Gulf gets more tense ,blocking fuel supply to almost entire world , the government has introduced austerity drive to save fuel.
According to a statement issued by the Media Wing of the Prime Minister Office (PMO) , Prime Minister Muhammad Shehbaz Sharif hon Thursday approved a nationwide austerity and conservation campaign in view of the increase in petroleum product prices in the international market due to tensions in the Middle East.
The statement said ‘ Decision was taken during an important meeting on austerity and energy conservation measures chaired by the Prime Minister in Islamabad”.
It added rising oil prices in the international market have exposed people around the world to inflation.
The statement said “The government and the elite will make sacrifices first,” the Prime Minister said.
He said that fuel subsidies for economically vulnerable and middle-income segments had already been initiated.
A subsidy of Rs. 100 per litre is being provided for motorcycles, rickshaws and vehicles up to 800cc.
The Prime Minister directed that unnecessary government expenditures be reduced, national resources be used prudently, and all relevant institutions ensure effective and immediate implementation of austerity measures.
The meeting reviewed additional austerity measures aimed at reducing government expenditures, conserving fuel and ensuring effective utilization of public resources.
The meeting approved a 50 percent reduction in fuel allocation for official vehicles for a period of three months.
Ambulances, fire brigades, law-enforcement agencies and vehicles used for essential services will be exempted from the measure. However, no exemption will be allowed for administrative or non-operational vehicles.
The meeting approved a 5 percent reduction in the Non-ERE budget for the financial year 2026-27, a complete ban on the purchase of all types of new government vehicles, and a ban on the purchase of all durable goods except IT-related items.
A ban has also been imposed for three months on official tours and overseas travel activities.
In case of unavoidable foreign visits, ministers, advisers, ministers of state, special assistants and government officials will travel in economy class.
The meeting also approved maximum use of video conferencing and teleconferencing for official business, a ban on official dinners except essential dinners hosted in honour of foreign delegations, and avoidance of unnecessary expenditure on government-sponsored seminars, training programmes and conferences.
The meeting decided to continue implementation of the single-dish policy at weddings and other functions.
Shops, markets, shopping malls, bazaars and other general business centres will close by 9:00 p.m., while marriage halls and other venues for functions will close by 10:00 p.m. Restaurants, cafés, food outlets and standalone fruit and vegetable shops will close by 11:00 p.m.
Pharmacies, medical centres, hospitals, bakeries, petrol and CNG stations, electric vehicle charging stations, gyms, sports facilities, IT companies and call centres have been exempted from the restrictions on operating hours.
The Prime Minister was informed that the committee established to monitor austerity and fuel-conservation measures would obtain implementation reports from ministries, divisions, departments, government institutions and provincial governments. The committee would identify non-compliance and obstacles, recommend corrective measures, and submit a weekly progress report to the Prime Minister.
Prime Minister Muhammad Shehbaz Sharif directed that the austerity measures be implemented without discrimination and that all possible measures be taken to reduce government expenditure and conserve energy and fuel.
The Federal Government has also approved continuation of the austerity measures already in force during the financial year 2026-27. These measures will also apply to attached departments of the Federal Government, state-owned enterprises, statutory bodies and regulatory authorities.
Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar, Federal Ministers Ahsan Khan Cheema, Ali Pervez Malik and Attaullah Tarar, along with other senior relevant officials, attended the meeting.