PM Shehbaz Sharif Approves Austerity Measures, Cuts Fuel for Government Vehicles by 50%

Prime Minister Shehbaz Sharif has approved additional austerity measures in Pakistan amid the current war-like situation, including a 50 percent reduction in fuel supply for government vehicles.

According to sources, the austerity measures will apply to all ministries, departments, autonomous bodies, defense organizations, the judiciary, and parliament.

Under the new policy, fuel supply to all government vehicles will be reduced by 50 percent for the next two months. However, the restriction will not apply to operational vehicles such as government buses, ambulances, and motorcycles. The move is expected to save around Rs4.5 billion at the federal level.

Authorities have also decided to ground 60 percent of government vehicles of federal and provincial governments for two months. Meanwhile, all ministers, advisers, and special assistants in federal and provincial cabinets will voluntarily forgo two months of their salaries and allowances.

Additionally, members of the National and Provincial Assemblies will take a voluntary 20 percent cut in their salaries and allowances for two months. Senior government officers in Grade 20 and above earning more than Rs300,000 per month will face a two-day salary deduction.

The government has also announced a 20 percent reduction in non-development expenditures for the fourth quarter of the current fiscal year, which is expected to save about Rs22 billion at the federal level.

Furthermore, a complete ban on the purchase of new vehicles will remain in place until June 2026.

Prime Minister Shehbaz Sharif is also expected to address the nation shortly regarding the current situation and the government’s policy measures