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Pakistan Reimposes Austerity Measures as Markets Ordered to Close at 9pm

News Desk by News Desk
September 17, 2026
in Business, Latest
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Pakistan Reimposes Austerity Measures as Markets Ordered to Close at 9pm
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ISLAMABAD (MNN); The federal government has reintroduced a package of austerity and fuel-conservation measures with immediate effect, ordering most markets and shops to close by 9pm and cutting fuel allocations for official vehicles by 50 per cent for three months amid renewed tensions in the Middle East.

The directives were issued by the Cabinet Division in a notification dated September 17, 2026, as the government seeks to conserve fuel and contain pressure on public finances. The measures include restrictions on business timings, government spending, official travel, vehicle purchases and other expenditures.

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Under the new schedule:

  • Shops, markets, shopping malls and bazaars, including departmental, grocery, general and kiryana stores, must close by 9pm.
  • Marriage halls, marquees and other venues hosting festive events must close by 10pm.
  • Restaurants, cafés, eateries and food outlets, as well as standalone fruit and vegetable shops, must close by 11pm.
  • Takeaway and home-delivery services are exempt from the restaurant closing restriction.
  • Pharmacies, medical stores, laboratories, clinics and hospitals are exempt.
  • Standalone bakeries, tandoors, milk and dairy shops, fuel and CNG stations, electric-vehicle charging stations, gyms, sports facilities and padel courts are also exempt.
  • IT companies and call centres will not be subject to the time restrictions.

The notification also directs that only one dish should be served at marriage-related functions and events.

50pc Cut in Fuel for Official Vehicles

Government departments have been instructed to reduce fuel provision for official vehicles by 50 per cent for three months.

The restriction does not cover vehicles used by the armed forces, civil armed forces, law-enforcement agencies and essential services, as well as vehicles used by the Federal Board of Revenue. However, administrative and non-operational formations of these institutions are not exempt.

Vehicles associated with development projects are also excluded from the fuel restriction.

5pc Cut in Non-Salary Government Expenditure

The government has ordered a 5 per cent reduction in non-employee-related expenditure under the federal budget for 2026-27, with the cut to be implemented on a monthly basis.

The measure will also apply to foreign missions and officials posted abroad, although essential obligations relating to rent, education and medical care will continue to be met. Development projects are exempt.

Ban on New Government Vehicles

The notification imposes a complete ban on the purchase of vehicles of all types by government departments, except where purchases are required for development projects.

The government has also prohibited the purchase of durable goods, with an exception for IT-related equipment and services. Development projects are again exempted from the restriction.

Foreign Travel Restricted for Three Months

A three-month ban on foreign visits and travel by government officials has also been imposed, including obligatory official trips.

Exceptions include scholarships offered by international development partners and training or courses arranged through the Economic Affairs Division or under institutional agreements with the Government of Pakistan.

During the restriction period, Pakistan’s ambassadors and high commissioners will represent the country at obligatory and important events where possible.

In cases of unavoidable foreign travel, ministers, advisers, ministers of state, special assistants to the prime minister and parliamentary or government officials have been directed to travel only in economy class.

Teleconferencing and Official Events Curbed

Government meetings have been directed to be held preferably through teleconferencing, except for intra-city meetings.

The government has also prohibited official dinners, except those arranged for visiting foreign delegations.

Government-funded seminars, training programmes and conferences have likewise been prohibited. Where such events are considered unavoidable, government auditoriums, committee rooms and other official facilities are to be used instead of private venues.

Requests for exemptions will be considered individually by the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures, which will forward its recommendations to the prime minister for approval.

Move Comes Amid Fuel and Regional Crisis

The latest measures follow the government’s decision earlier this week to revive austerity policies introduced during a previous fuel-conservation campaign. Information Minister Attaullah Tarar had said on September 14 that the government was considering bringing back the measures amid renewed hostilities in the Middle East.

The government had introduced a previous austerity package in March, including a 50pc reduction in official vehicle fuel allowances. Some of those measures were later withdrawn, although market timings continued under earlier directives.

The latest decision comes as international oil markets remain under pressure from the wider Middle East conflict and disruption risks around major energy routes. Pakistan also raised petrol and high-speed diesel prices from September 17, with petrol reaching Rs391.22 per litre and HSD Rs421.45 per litre.

The government has therefore combined restrictions on commercial timings with cuts in official fuel consumption and public-sector spending as part of its latest effort to conserve fuel and manage the economic impact of the regional crisis.

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