Pakistan Launches Sweeping Austerity Drive Amid Energy Crisis

Pakistan's federal government has announced a comprehensive national austerity and energy conservation drive, implementing immediate cuts to government spending and fuel use to stabilize fiscal reserves amid rising energy costs and supply disruptions linked to the Middle East conflict. The measures, detailed in a Cabinet Division notification issued on Thursday, September 17, 2026, include a 50% reduction in fuel allowances for all official government vehicles for the next three months and a complete ban on the purchase of new government vehicles and durable office equipment, with an exception for IT-related procurement. The austerity package also imposes a strict three-month ban on foreign official visits and state-funded overseas travel for public servants. Where foreign travel is unavoidable, officials will be required to travel economy class. The government has banned official dinners, funded seminars, and high-level conferences, encouraging a transition to virtual teleconferencing. As part of an aggressive energy conservation framework, retail markets and shopping centres must close by 9 PM, while restaurants and eateries must cease operations by 11 PM.