PM Approves Austerity Drive As Global Petroleum Prices Surge
ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 17th Sep, 2026) Prime Minister Shehbaz Sharif on Thursday approved a nationwide austerity and energy conservation campaign in view of rising global petroleum prices amid tensions in the middle East.
The decision was taken at a high-level meeting chaired by the prime minister to review austerity and energy conservation measures, as per a Prime Minister's Office news release.
The prime minister stated that the surge in petroleum prices had led to inflationary pressures worldwide, emphasizing that sacrifices should first be made by the government and elite. He highlighted the initiation of a fuel subsidy for economically vulnerable and middle-income segments, under which motorcycles, rickshaws, and vehicles up to 800cc are entitled to a Rs100 per litre subsidy.
He directed authorities to ensure the immediate and effective implementation of measures aimed at reducing unnecessary government expenditure and promoting prudent resource utilization.
The meeting approved:
- A 50% reduction in fuel allocations for government vehicles for three months, with exemptions for ambulances, fire brigades, law enforcement agencies, essential service vehicles.
- A five percent cut in the non-ERE budget for fiscal year 2026-27.
- A complete ban on purchasing new vehicles at the government level.
- A ban on procurement of durable goods except IT-related equipment.
- Suspension of government visits and overseas travel for three months, with exceptions for unavoidable cases.
- Travel restrictions for ministers, advisers, and officials to economy class.
The meeting also approved:
- Maximum utilization of video and teleconferencing for official business.
- A ban on official dinners, except necessary ones hosted for foreign delegations.
- Avoiding unnecessary expenditure in government-sponsored events like seminars, training programs, and conferences.
- Continuation of the single-dish policy at weddings and functions.
Shops, markets, shopping malls, and general business centers will close by 9 p.m., with marriage halls and venues closing by 10 p.m. Restaurants, cafes, food outlets, and standalone fruit and vegetable shops will close by 11 p.m. Pharmacies, medical centers, hospitals, bakeries, petrol/CNG stations, electric vehicle charging stations, gyms, sports facilities, IT companies, and call centers remain exempt from the specified closing-time restrictions.