Pakistan Implements Austerity Measures Amid Rising Fuel Costs

Sep 17, 2026

63 min

Sep 17, 2026 13:32

Pakistan unveils sweeping austerity measures as fuel prices soar

## New Austerity Measures

Pakistan has introduced a series of austerity measures to combat rising fuel prices, driven by disruptions in global energy supplies due to the Middle East conflict. The government has mandated early closures for shops, markets, and malls by 9pm, while restaurants and cafés can operate until 11pm. These measures are part of a broader strategy to conserve energy and reduce costs.

## Fuel Price Hike

The country is facing significant increases in fuel prices, with petrol now costing Rs391.22 per litre and high-speed diesel priced at Rs421.45 per litre. These hikes are attributed to volatility in international markets, impacting Pakistan as a major energy importer.

## Government Spending Cuts

In addition to business restrictions, the government is reducing its own fuel consumption by cutting allocations for official vehicles by 50% for three months. Restrictions have also been placed on foreign travel for federal officials, with only essential trips allowed. Non-essential government purchases and expenditures are also being curtailed.

## Exemptions and Relief Measures

Certain essential services, such as hospitals, pharmacies, and fuel stations, are exempt from the new closing times. Additionally, a relief scheme offering Rs100-per-litre fuel for motorcycles, rickshaws, and small cars has been launched to help ease the burden on consumers.

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