The federal government has decided to continue its austerity measures during the current fiscal year as part of efforts to control public expenditure and improve fiscal discipline.
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According to official sources, the federal cabinet has approved the continuation of cost-cutting measures introduced in previous years. Following the decision, the Cabinet Division forwarded the approval to the Ministry of Finance for implementation, with a formal notification expected to be issued shortly.
Under the renewed policy, all government positions that have remained vacant for the past three years will be abolished. The government will also maintain its ban on the creation of new posts across federal departments in an effort to reduce the size of the public sector and limit recurring expenditures.
The cabinet has further decided to continue the ban on the purchase of all types of government vehicles during the current financial year. Restrictions on the procurement of machinery and equipment will also remain in place unless deemed essential under approved exceptions.
In addition, the government will continue prohibiting overseas medical treatment at public expense, except where specifically permitted under existing rules. The ban on non-essential foreign visits funded by the government will also remain effective as part of broader efforts to minimize official spending.
Officials said the austerity policy is aimed at strengthening financial management, reducing unnecessary expenditures, and supporting the government’s broader economic reform agenda. The measures are expected to complement ongoing fiscal consolidation efforts while ensuring that limited public resources are directed toward priority sectors.
The Ministry of Finance is expected to issue a detailed notification outlining the implementation framework and applicable guidelines for all federal ministries, divisions, and departments.
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Pakistan has adopted several rounds of austerity measures in recent years to ease pressure on public finances, reduce the fiscal deficit, and meet economic reform commitments. The continuation of these policies reflects the government’s intention to maintain strict expenditure controls during the current fiscal year.