Government Enforces New Austerity Measures to Save Fuel

government enforces new austerity measures to save fuel

In response to the escalating tensions in the Middle East, the government has reinstated austerity measures aimed at conserving fuel. Effective immediately, markets will be required to close by 9 pm, and a significant reduction in fuel allocation for government vehicles is set to be implemented for a span of three months.

Market Closures and Exemptions

The directives, outlined in a notification from the Cabinet Division, specify that a variety of commercial establishments, including shops, malls, and grocery stores, must cease operations by 9 pm. Meanwhile, venues hosting celebratory events are to shut by 10 pm, and dining establishments are expected to close by 11 pm. However, takeaway and home delivery services will not be affected by these new hours.

Several sectors, including pharmacies, medical facilities, and essential service providers like fuel stations and IT companies, are exempt from these closing times. The government has also mandated that only one dish be served at marriage-related events to further curb excesses.

Fuel and Budget Restrictions

The notification also includes a directive to cut fuel provisions for official vehicles by half over the next three months. This does not apply to vehicles used by the armed forces, law enforcement, essential services, or the Federal Board of Revenue, except for their administrative units. Development projects also remain unaffected by this restriction.

In addition to fuel conservation, the government has announced a 5% reduction in non-salary related expenditures for the fiscal year 2026-27. This budget cut is applicable across all government sectors, including foreign missions, but does not affect development projects or essential obligations such as rent and healthcare.

Ban on Purchases and Travel Restrictions

A complete prohibition on the purchase of new vehicles and durable goods has been imposed, with IT equipment being the only exception. This restriction is similarly waived for development projects. The government has also enacted a temporary ban on international travel for three months, which includes official trips.

Diplomatic responsibilities during this period will be handled by ambassadors or high commissioners. In cases where travel is unavoidable, officials are instructed to fly economy class. Moreover, it is encouraged that official meetings be conducted via teleconference whenever possible.

Implementation and Monitoring

The Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures will oversee these initiatives. They will review exemption requests on an individual basis and present their recommendations to the prime minister for final approval.

These measures come as a reactivation of policies initially introduced in March to counteract the effects of the US-Iran conflict. The recent resurgence in Middle Eastern hostilities has disrupted key oil supply channels, prompting a rise in fuel prices and necessitating renewed conservation efforts.