Islamabad, September 17, 2026(Kamran Raja): Prime Minister Muhammad Shehbaz Sharif has approved a nationwide austerity and energy conservation campaign in response to rising petroleum prices in the international market amid heightened tensions in the Middle East.
The decision was taken during an important meeting chaired by the Prime Minister in Islamabad to review austerity measures, reduction in government expenditure, and energy conservation initiatives.
“The increase in global oil prices is fueling inflation across the world,” the Prime Minister said, emphasizing that the government and the elite would lead by making sacrifices first.
He said fuel subsidies for economically vulnerable and middle-income segments had already been initiated, with a subsidy of Rs100 per litre being provided for motorcycles, rickshaws and vehicles up to 800cc.
The Prime Minister directed the relevant institutions to ensure immediate and effective implementation of measures aimed at reducing unnecessary government expenditure and ensuring prudent use of national resources.
The meeting approved a 50 percent reduction in fuel allocations for government vehicles for three months. Ambulances, fire brigades, law enforcement vehicles and vehicles used for essential services will remain exempt. However, administrative and non-operational vehicles will not be granted exemptions.
The meeting also approved a 5 percent reduction in the non-ERE budget for the fiscal year 2026-27, a complete ban on the purchase of new government vehicles, and a ban on procurement of all durable goods except IT-related purchases.
A three-month ban on official visits and overseas travel was also approved. In case of unavoidable foreign visits, ministers, advisers, ministers of state, special assistants and government officials will travel in economy class.
The meeting further approved maximum use of video and teleconferencing for official business and a ban on official dinners, except essential dinners hosted in honour of foreign delegations. Unnecessary expenditure on government-sponsored seminars, training programmes and conferences will also be avoided.
The government also decided to continue implementation of the single-dish policy at weddings and other social functions.
Under the approved business-hour measures, shops, markets, shopping malls, bazaars and other general commercial centres will close by 9:00 p.m., while wedding halls and other event venues will close by 10:00 p.m. Restaurants, cafes, 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 will be exempt from these operating-hour restrictions.
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 organizations and provincial governments. The committee will identify non-compliance and implementation hurdles, recommend corrective measures and submit a weekly progress report to the Prime Minister.
Prime Minister Shehbaz Sharif directed that the austerity measures be implemented without discrimination and that all possible steps be taken to reduce government expenditure and conserve energy and fuel.
The federal government has also approved continuation of austerity measures already in place for fiscal year 2026-27. These measures will apply to attached departments of the federal government, state-owned entities, statutory bodies and regulatory authorities.
Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar, Federal Ministers Ahsan Khan Cheema, Ali Pervaiz Malik and Attaullah Tarar, along with senior relevant officials, attended the meeting.