Pakistan announces austerity measures amid rising fuel prices: A practical reader guide

Pakistan announces austerity measures amid rising fuel prices: A practical reader guide

Pakistan on Thursday (September 17, 2026) announced a raft of austerity measures to curb fuel consumption as escalating conflicts in West Asia led to an increase in global oil prices, threatening nationwide gas and power supplies.

Under the measures announced on Thursday (September 17, 2026), fuel allocations for government vehicles will be cut by 50%, although vehicles used by the armed forces, law enforcement agencies and essential services will be exempted. The government also announced a 5% reduction in non-employee-related expenditure and banned official foreign visits as well as domestic travel for meetings, asking officials to switch to virtual meetings instead.

The measures, approved by the Pakistan cabinet, will remain in effect for three months as the government seeks to contain fuel consumption and expenditure. Official dinners have also been prohibited, except those hosted for foreign visitors and delegations, while the purchase of new government vehicles has been banned. The development comes after the government on Tuesday (September 15, 2026) raised the price of petrol by PKR 4.10 per litre and high-speed diesel (HSD) by PKR 6.41 per litre, taking them to PKR 384.34 and PKR 415.83 per litre, respectively.