The Finance Division has rolled out a fresh wave of austerity measures for the fiscal year 2025–26, tightening the government’s belt with a series of strict restrictions aimed at curbing public expenditure. The notification, approved by the federal cabinet on June 10, extends the scope of previous directives from 2023 and 2024, and is binding on all federal ministries, departments, state-owned enterprises (SOEs), and regulatory bodies.

Under the new measures, the government has imposed a blanket ban on the purchase of vehicles, with only a handful of exceptions: ambulances, fire trucks, solid waste vehicles, educational buses, and motorcycles. The procurement of machinery and equipment has also been halted, except for essential sectors such as hospitals, laboratories, agriculture, mining, and schools.

The notification further prohibits the creation or continuation of contingent and temporary posts, and mandates the abolition of any government positions that have remained vacant for more than three years. Exemptions to this rule apply only to projects funded under the Public Sector Development Programme (PSDP).

In a move to rein in travel expenses, the government has barred officers from seeking medical treatment abroad at public expense and has suspended all non-obligatory foreign visits funded by the state.

For state-owned enterprises, these austerity measures are not just guidelines—they are legally binding under the State-Owned Enterprises Act, 2023.