The Federal government austerity measures will continue during the current fiscal year as Pakistan seeks to keep public spending under control. The federal cabinet has approved the continuation of cost-cutting policies, while the Cabinet Division has forwarded the decision to the Ministry of Finance for implementation.
According to official sources, the government aims to maintain strict financial discipline by extending the existing austerity framework. The Ministry of Finance is expected to issue a formal notification in the coming days, outlining the measures that federal departments must follow throughout the fiscal year.
As part of the approved policy, all government posts that have remained vacant for the past three years will be abolished. The government will also continue its ban on creating new positions, reflecting its commitment to reducing administrative expenses and improving the efficiency of public institutions.
The restrictions on purchasing official vehicles will remain in effect for another fiscal year. Similarly, federal departments will not be allowed to buy new machinery or equipment unless specifically approved under exceptional circumstances. These steps are intended to limit non-essential spending across government offices.
The government has also decided to continue the ban on overseas medical treatment funded through public resources. In addition, restrictions on non-essential foreign visits at government expense will remain in place. Officials believe these measures will help reduce unnecessary expenditures while ensuring that public funds are used more responsibly.
Pakistan has relied on fiscal discipline in recent years to strengthen economic stability and improve financial management. The continuation of these austerity measures reflects the government’s broader strategy to control expenditures while supporting ongoing economic reforms and maintaining budgetary balance.
The Cabinet Division has already conveyed the cabinet’s decision to the Ministry of Finance for execution. Once the official notification is issued, all federal ministries and departments will be required to comply with the updated Federal government austerity measures during the current financial year.
