Pakistan Tightens Austerity Measures as Fuel Prices Surge, Islamabad Markets to Shut by 9pm
ISLAMABAD: The federal government has introduced a fresh set of fuel conservation and austerity measures as Pakistan faces rising petroleum costs linked to renewed tensions in the Middle East.
Under the new restrictions, shops, markets and shopping malls in Islamabad will be required to close by 9pm. The measures currently apply to the federal capital, while provincial and regional governments have been encouraged to consider similar steps.
The government’s latest move comes amid volatility in international energy markets and concerns over regional oil and gas supplies.
Islamabad Markets to Close by 9pm
The revised schedule requires shops, bazaars, shopping malls, departmental stores, grocery outlets and general retail businesses in Islamabad to shut by 9pm.
Marriage halls, marquees and other venues hosting wedding or festive events must close by 10pm, while restaurants, cafés and other food outlets can operate until 11pm. Takeaway and home-delivery services are exempt from the restaurant closing restriction.
Marriage-related events will also be restricted to serving a single dish.
Essential and selected services will remain exempt from the early-closing requirements. These include hospitals, pharmacies, clinics, medical laboratories, standalone bakeries, tandoors, dairy outlets, petrol and CNG stations, EV charging facilities, gyms, sports facilities, IT companies and call centres.
Government Vehicle Fuel Allocation Cut by 50%
The austerity package also targets fuel consumption within the federal government.
Fuel allocations for official vehicles will be reduced by 50% for three months, according to the notified measures. Certain operational vehicles used by the armed forces, civil armed forces, law-enforcement bodies, essential services and the Federal Board of Revenue are exempt, while administrative and non-operational formations remain subject to the reduction.
Development projects are also exempt from this particular restriction.
The government has additionally prohibited the purchase of new vehicles and durable goods by government departments, with exceptions including IT procurement and development projects.
Foreign Travel Restricted for Government Officials
Official foreign travel has also been suspended for three months as part of the cost-cutting drive.
Limited exceptions are available for certain scholarships and training programmes arranged through international development partners, the Economic Affairs Division or institutional agreements.
Where representation abroad is required, Pakistan’s ambassadors or high commissioners may represent the country at important events. In cases where official travel cannot be avoided, ministers, advisers, special assistants and other government functionaries will be required to travel in economy class.
The government is also encouraging greater use of teleconferencing for official meetings and restricting government-funded dinners, seminars, conferences and training events.
Government Spending to Be Reduced
Alongside fuel and travel restrictions, the government has ordered a 5% reduction in non-essential recurring expenditure for fiscal year 2026-27.
The Finance Division had already published federal austerity measures for FY2026-27 in July, reflecting the government’s broader effort to control expenditure.
The latest restrictions add an energy-conservation component as policymakers respond to higher fuel costs and uncertainty surrounding regional energy supplies.