Pakistan Government Considers Reimposing Austerity Measures Amid Rising Economic Pressures
ISLAMABAD: The federal government is considering reintroducing a fresh round of austerity measures from next week in response to growing economic challenges triggered by escalating tensions between Iran and the United States.
According to media reports, Prime Minister Shehbaz Sharif has directed officials to prepare a comprehensive plan to further reduce government expenditures. A formal notification outlining the measures is expected to be issued within the next few days.
The move comes as the government seeks to minimize pressure on the national treasury amid concerns over the regional security situation and its potential economic impact.
The federal cabinet has reportedly approved the continuation of austerity measures for the current fiscal year and has instructed the Cabinet Division to forward the decision to the Ministry of Finance for implementation.
Under the proposed policy, all vacant positions in federal ministries and departments that have remained unfilled for the past three years will be abolished, while the ban on creating new government posts will remain in effect.
The government is also expected to continue the ban on purchasing new official vehicles, machinery, and equipment during the current fiscal year. In addition, government-funded overseas medical treatment will remain prohibited, and restrictions on non-essential foreign travel by ministers and government officials will continue.
Sources said the Ministry of Finance is expected to issue a detailed notification early next week following consultations with Prime Minister Shehbaz Sharif, after which federal departments will immediately implement further spending cuts.
