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Pakistan extends austerity measures for another year

Published on: July 20, 2026 4:37 PM

The federal government has decided to continue austerity measures during the current fiscal year to control public spending. The decision aims to improve fiscal discipline and reduce unnecessary expenditures. Federal ministries and government departments will implement the approved measures.

According to official sources, the federal cabinet approved the continuation of cost-saving measures during a recent meeting. The Cabinet Division has forwarded the decision to the Ministry of Finance for implementation. The ministry is expected to issue detailed instructions soon.

Read more: Federal government extends austerity measures to curb spending

Meanwhile, the government will abolish all vacant positions that have remained unfilled for the past three years. Additionally, the ban on creating new government posts will remain in force. Authorities will also continue restrictions on purchasing all types of vehicles.

Moreover, the cabinet decided to maintain the ban on procuring machinery and equipment with public funds. According to sources, restrictions on overseas medical treatment at government expense will also continue. Non-essential foreign visits funded by the government will remain prohibited.

The measures are intended to limit non-development expenditures and strengthen fiscal management. Therefore, federal institutions will continue operating under tighter financial controls. The policy supports broader efforts to improve budget efficiency during the current fiscal year.

Read more: Shehbaz reviews economic risks from regional crisis 

Additionally, the continuation of these restrictions reflects the government’s focus on reducing unnecessary administrative costs. Officials expect all federal ministries and departments to comply with the approved directives. The Ministry of Finance will oversee implementation after issuing the notification.

Meanwhile, the Ministry of Finance is expected to release the official notification in the coming days. The notification will formally enforce the cabinet’s decision across federal institutions. Further implementation details may be shared after the notification is issued.

 

Filed Under: Pakistan Tagged With: cabinet decision Pakistan, federal government spending, fiscal discipline Pakistan, government expenditure, Latest, Ministry of finance, Pakistan austerity measures

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