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Pakistan Announces Austerity Measures to Conserve Fuel as Gulf Conflict Spirals

Pakistan slashes official fuel by 50% and bars foreign travel for three months as it tightens spending and limits wedding, market and restaurant hours.

  • On Thursday, the federal government announced austerity measures including a 50 per cent cut in fuel allocations for official vehicles and a 5 per cent reduction in non-employee-related expenditure for the current fiscal year.
  • Spiking fuel prices due to the Gulf conflict prompted the measures, as fighting between Saudi Arabia and the Iran-backed Houthis imperils Red Sea trade and leaves Pakistan facing potential gas and power shortages.
  • The Cabinet Division notification imposed a complete ban on official vehicle purchases and foreign travel for three months, though officials may undertake necessary trips in economy class if deemed "unavoidable."
  • Starting Wednesday, the South Asian nation implemented a new policy offering motorcycle, rickshaw, and small-car owners a subsidy of 100 rupees a litre to ease the impact of rising prices.
  • Marking the second time this year the government has unveiled such measures, the restrictions will remain in force for three months following similar steps taken in March to conserve fuel and cut spending.
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Al-Monitor broke the news in Washington, United States on Thursday, September 17, 2026.
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