Prime Minister Shehbaz Sharif has approved strict austerity measures, including a 50 percent reduction in fuel supply for government vehicles over the next two months. The decision aims to manage economic pressures caused by the ongoing petroleum crisis and wartime disruptions, affecting federal and provincial ministries, departments, and autonomous agencies.
According to sources, the cuts will not affect operational vehicles such as buses, ambulances, or motorcycles. Around 60 percent of federal and provincial official vehicles will be grounded for two months. The fuel reduction is expected to save approximately 4.5 billion Pakistani rupees at the federal level.
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All federal and provincial cabinet ministers, advisors, and assistants have voluntarily agreed to forgo two months’ salaries and allowances. Members of the national and provincial assemblies will also take a 20 percent voluntary pay cut for two months. Additionally, officers in grades 20 and above with salaries exceeding 300,000 rupees will donate two days’ pay.
Non-development budgets for the fourth quarter of the financial year across all federal and provincial departments will see a 20 percent cut. These budgetary savings are expected to save around 22 billion rupees nationwide. New vehicle purchases have been completely banned until June 2026.
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The prime minister is scheduled to address the nation shortly to explain the measures and build public confidence. Authorities have emphasized that these austerity steps will be applied uniformly across all defense organizations, judiciary, and parliament.