Pakistan Announces Three-Month Austerity Drive as Fuel Prices Rise

The federal government has announced a three-month austerity and fuel conservation drive. The measures include earlier closing times for businesses, cuts in government fuel use, restrictions on official travel and a ban on new government vehicles.

Prime Minister Shehbaz Sharif approved the measures on September 17, 2026, during a meeting on austerity and energy conservation in Islamabad. The government linked the campaign to higher international petroleum prices amid tensions in the Middle East.

The Cabinet Division then issued a notification with immediate effect.

New Timings

Shops, markets, shopping malls, bazaars, departmental stores, grocery stores, general stores and kiryana stores must close by 9:00 PM.

Marriage halls, marquees and other venues for festive events must close by 10:00 PM. Only one dish can be served at marriage-related functions.

Restaurants, cafés, eateries, food outlets and standalone fruit and vegetable shops must close by 11:00 PM. Takeaway and home delivery services remain exempt.

Pharmacies, hospitals, clinics, medical laboratories, bakeries, tandoors, milk and dairy shops, petrol and CNG stations, EV charging stations, gyms, sports facilities, sports and padel courts, IT companies and call centers remain exempt from the closing-time rules.

Government Spending and Fuel Cuts

The government will cut fuel allocations for official vehicles by 50% for three months.

Operational vehicles used by the armed forces, civil armed forces, law enforcement agencies, essential services and the FBR remain exempt. The exemption does not cover their administrative or non-operational vehicles.

Development projects also remain outside the fuel cut.

The Non-ERE Budget for 2026-27 will face a 5% reduction through monthly deductions.

The government has also banned purchases of new vehicles and durable goods. IT-related purchases remain allowed.

Travel Restrictions

Official foreign travel will remain banned for three months. Unavoidable travel will require economy-class travel for ministers, advisers and government officials.

Government departments must use video or teleconferencing where possible. Official dinners, seminars, training programs and conferences are also restricted. Dinners for visiting foreign delegations remain exempt.

Provincial and regional governments have been asked to consider similar measures. A government committee will review exemption requests and submit recommendations to the prime minister.