Govt brings back austerity measures amid Middle East tensions

The federal government on Thursday brought back austerity measures to conserve fuel amid escalating tensions in the Middle East.

The measures, notified by the Cabinet Division, will take effect immediately. Under the notification, shops, markets, shopping malls, bazaars and various retail stores, including grocery, general and kiryana stores, must close by 9pm.

Marriage halls, marquees and other commercial venues hosting festive events will have to close by 10pm.

Restaurants, cafés, eateries and other food outlets will be allowed to operate until 11pm. Standalone fruit and vegetable shops will also have to close by that time. However, takeaway and home delivery services will not be covered by the restriction.

A number of essential and specific businesses have been exempted from the timing restrictions. These include pharmacies, medical and medical supplies stores, laboratories, clinics, hospitals, standalone bakeries, tandoors, milk and dairy shops, fuel and CNG stations, electric vehicle charging stations, gyms, sports facilities, sports and padel courts, IT companies and call centres.

The government has also imposed a one-dish condition on marriage-related functions and events.

The notification also sets out spending and fuel-saving measures for government departments and officials. Fuel allocations for official vehicles will be reduced by 50 per cent for the next three months.

The restriction will not cover vehicles used by the armed forces, civil armed forces, law enforcement agencies and essential services, as well as vehicles being used by the Federal Board of Revenue.

The government has additionally ordered a 5pc cut in non-employee-related expenditure from the FY2026-27 budget. The reduction will be applied every month.

The same spending cut will apply to Pakistan’s foreign missions and officers posted there. However, expenses related to their rent, education fees and medical care will continue to be covered.

The notification clarified that the 5pc expenditure reduction would also not apply to development projects.