The federal government has exempted operational vehicles of the Armed Forces from a 50 percent cut in fuel allocations for official vehicles, while administrative and non-operational military vehicles will remain subject to the restriction.

The fuel cut will remain in place for three months. Operational vehicles of the Civil Armed Forces, law enforcement agencies, essential services and the Federal Board of Revenue have also been excluded from the reduction.

The government has separately ordered a 5 percent monthly cut in Non-ERE budgetary spending for FY2026-27. The reduction will also apply to foreign missions, although rent, education fees and medical expenses will continue to be paid.

The purchase of all types of vehicles and durable goods has also been prohibited. IT-related purchases are exempt from the restriction on durable goods.

Development projects will not be affected by the fuel cut, Non-ERE spending reduction or bans on vehicle and durable goods purchases.