The federal government has decided to extend austerity measures into the current fiscal year, aiming to curb unnecessary public spending and control the budget deficit. The Ministry of Finance issued a fresh notification on Monday, reaffirming the cabinet’s earlier decision from September 4, 2024.
As per the notification, all government vacancies that remained unfilled for the past three years are now permanently abolished. No new positions may be created without special approval. This move is part of a broader strategy to reduce the size of the bureaucracy and ensure only essential hiring.
The ban on purchasing vehicles, machinery, and equipment for government departments remains in force. This includes all categories of vehicles, from official transport to administrative use, helping cut procurement costs significantly.
In addition, the government reiterated that no foreign medical treatments will be funded by public money. Similarly, non-essential international trips for government officials remain restricted. Only visits deemed critical for diplomatic or economic purposes may be allowed under strict conditions.
The Ministry of Finance has circulated the notification to all federal ministries and divisions, directing them to implement the policies without exception. Officials said these measures are necessary due to the country’s economic challenges, rising debt, and commitment to fiscal discipline under IMF guidance.