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KP government cuts petrol allowances under austerity measures

Published on: March 20, 2026 1:40 PM

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has announced strict enforcement of its austerity measures, including significant reductions in petrol allowances for government officials.

Read More: Punjab restricts ministers and officers’ petrol allowance by 50%

According to an official notification, fuel allocations for officers in the Directorate of Law and Human Rights have been reduced by up to 25 percent, although the Director General’s petrol limit will remain unchanged. The petrol quota for BS-19 directors has been cut from 85 litres to 64 litres, while deputy directors are now limited to 54 litres, down from 72 litres.

Authorities have directed officials to strictly adhere to the revised limits and maintain accurate vehicle log books, warning that any violations will result in disciplinary action. The move is part of a wider push to curb government expenditure and promote efficient use of resources.

This development follows a similar federal initiative. The Pakistan federal cabinet division issued notifications introducing austerity and fuel-saving measures, including temporary salary cuts across government institutions.

Under the federal policy, senior management salaries will be reduced for two months based on income slabs. Officials earning between Rs300,000 and Rs1 million will face a five percent reduction; those earning between Rs1 million and Rs2 million will see a 15 percent cut. Salaries between Rs2 million and Rs3 million will be reduced by 25 percent, and those earning above Rs3 million will face a 30 percent deduction.

Read More: Maryam suspends ministers’ fuel, cuts allowance by 50%

Officials and analysts say these measures aim to control non-essential spending amid economic pressures and encourage resource efficiency across government departments. Both provincial and federal austerity measures signal a concerted effort to manage public finances while maintaining essential services.

Filed Under: Business Tagged With: austerity measures, fuel rationing, government officials, Khyber Pakhtunkhwa, Latest, Pakistan salary cuts, petrol allowance

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