The federal government on Thursday announced a new round of austerity and fuel conservation measures, including a 50% reduction in fuel allocations for official vehicles and a cut in non-employee-related government expenditure.
The measures have taken effect immediately following a notification issued by Cabinet Secretary Kamran Ali Afzal. The reduction in fuel allocations will remain in place for three months, along with restrictions on foreign travel.
Under the directive, fuel provided for government vehicles will be cut by half. Operational vehicles belonging to the armed forces, civil armed forces, law enforcement agencies, essential services and the Federal Board of Revenue have been exempted.
The exemption will not extend to vehicles assigned to administrative and other non-operational formations of these organisations, which will remain subject to the 50% reduction. Vehicles used for development projects are also excluded from the fuel restriction.
In a separate cost-cutting measure, federal institutions have been directed to reduce their monthly non-employee-related expenditure (Non-ERE) by 5% during the current financial year.
The spending reduction will also cover Pakistan’s foreign missions and officials from various occupational groups and services posted overseas. However, essential obligations including accommodation rents, educational fees and medical expenses will continue to be paid.
“This measure will also apply in the case of foreign missions, and the officers/officials belonging to any occupational group or service, posted in these missions; however, obligations relating to their rents, educational fees and medical care arrangements will be met,” the notification said.
Development projects are exempt from the 5% expenditure reduction.
The government has also imposed a complete ban on the purchase of vehicles of all types as part of the latest austerity drive.