Govt re-enacts austerity measures to reduce expenses

The federal government has decided to re-enact austerity measures to reduce public expenditure.

The federal cabinet has approved on Tuesday the continuation of austerity measures until the fiscal year 2026-27. Under the new austerity notification, the purchase of all types of new vehicles and the acquisition of machinery, equipment and non-essential items, except medical equipment, have been restricted. The government departments will not be allowed to create new posts or hire new staff.

Moreover, the restrictions have been placed on non-essential official visits, conferences and training programmes. The policy has also aims to reduce operational expenses, including office costs, hospitality, event management, printing and advertising.

The measures included reducing petrol and diesel consumption, cutting the size of VIP convoys and limiting the approval of new government projects. The rent, repairs and other unnecessary expenses will also be controlled.

All government departments, state-owned enterprises, statutory bodies and regulatory authorities must follow the austerity directives. For state-owned enterprises, the measures will serve as instructions from the federal government.

The Austerity Committee has the authority to grant exemptions from the rules on a case-by-case basis. All ministries and divisions have been directed to communicate the instructions to their subordinate departments immediately.