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Pakistan Tightens Spending Rules With New Austerity Measures

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Pakistan has reintroduced austerity measures to conserve fuel amid rising energy costs linked to the widening conflict in West Asia, including a one-dish limit at weddings and restrictions on official spending and travel.

The federal government announced the measures on Thursday, while commercial closing timings of 9pm for markets, 10pm for marriage halls and 11pm for restaurants continue under existing rules. The federal government has asked provincial and regional authorities to consider adopting similar measures.

The move marks the second time this year that Islamabad has turned to such measures, as it tries to shield the country from rising fuel and energy costs caused by the ongoing conflict in West Asia. Officials say the disruption to oil and gas routes through the Strait of Hormuz and, more recently, the Red Sea, has left Pakistan, which depends heavily on imported energy, especially exposed to price shocks and supply shortages.

What has the government announced?

According to a notification from the Cabinet Division, seen by Dawn, the measures took effect immediately on Thursday. Shops, markets and general stores must now close by 9pm, wedding halls by 10pm, and restaurants and cafes by 11pm, though takeaway and delivery services are exempt. Hospitals, pharmacies, petrol stations, IT firms and a few other essential services are also exempt from the new closing times.The Pakistan Prime Minister’s Office said in a statement that the measures include a “reduction of fuel provision by 50 per cent for official vehicles for three months,” alongside a “5 percent reduction in the Non-Employee Related Expenditure Budget for the whole FY 2026-27.” It added that there would be a “complete ban on purchase of all durables except IT procurements and complete ban on foreign visits and travel for three months, even in the case of obligatory visits, except in the case of scholarships.”

The government has also banned the purchase of new vehicles for state use and ordered that only one dish be served at wedding functions. Officials have been told to hold meetings by video call where possible, and no official dinners will be hosted except for visiting foreign delegations. Government-funded seminars and conferences have also been put on hold, with any unavoidable events to be held using existing government venues.

Any requests to be excused from these rules will be reviewed case by case by a special committee, which will then pass its recommendations to the prime minister.

Why is Pakistan doing this again?

Similar steps were introduced in March, when the government shut schools for two weeks, cut fuel use across departments, and encouraged staff to work from home. Those measures were lifted in June, apart from the market closing times.

Reuters reported that Pakistan is facing the risk of gas and power shortages, as the wider conflict in West Asia disrupts supplies of liquefied natural gas and pushes up the cost of petrol and diesel. Petrol prices rose by 4.10 rupees a litre on Tuesday, while diesel went up by 6.41 rupees, taking petrol to 384.34 rupees a litre and diesel to 415.83 rupees.

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