Pakistan launches new austerity drive, cuts official fuel use by 50pc

Operational vehicles and those used by the armed forces, civil armed forces, law-enforcement agencies, essential services and the Federal Board of Revenue (FBR) have been exempted from the fuel restriction. The government has also imposed a ban on the purchase of new vehicles, including official vehicles.

Purchases of durable goods have similarly been restricted, with IT-related procurement exempted. Foreign travel restricted for three months. Foreign travel under the federal government has been restricted for three months, subject to specified exemptions.

Where an overseas visit is considered unavoidable, ministers, advisers and government officials will be required to travel in economy class. Government departments have also been directed to give preference to video conferencing instead of physical meetings where possible.

The measures prohibit official dinners funded by the government, except those held for foreign delegations. Government-funded seminars, training programmes and conferences have also been restricted. Where an essential official event must be held, departments have been instructed to use government auditoriums and committee rooms instead of outside venues.

Markets to close at 9pm. The measures also include revised business hours as part of efforts to conserve energy., 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 be required to close by 11pm, although takeaway and home-delivery services have been exempted from these timing restrictions.

Pharmacies, hospitals, clinics, medical laboratories, petrol pumps and other essential services will also remain exempt. Bakeries, tandoors, milk and dairy shops, electric-vehicle charging stations and gyms are among the other categories granted exemptions. The austerity measures also provide for serving one dish at wedding functions.

Non-employee expenditure cut by 5pc. In another cost-control measure, the government has ordered a 5pc reduction in non-employee expenditure., the reduction will be implemented on a monthly basis throughout the financial year. The 5pc cut will also apply to relevant non-employee expenditure involving foreign missions, professional groups and services.

Requests for exemptions from the austerity measures may be considered on a case-by-case basis. Provincial and territorial governments may also consider adopting similar measures. The latest restrictions represent a broad government effort to curb public expenditure and petroleum consumption while encouraging energy conservation across commercial and official activities.