Staff Report
ISLAMABAD: The federal government has notified sweeping austerity and fuel conservation measures to conserve energy as fuel prices spike due to the Middle East conflict, with all shops, markets, and shopping malls in Islamabad closing at 9pm throughout the week.
The new austerity measures are initially limited to Islamabad, with the federal government encouraging provincial and regional governments to consider adopting similar measures.
Fuel prices recorded a sharp increase in the country amid heightened volatility in global oil markets triggered by renewed hostilities in the Middle East and closure of the Strait of Hormuz, a key route for oil and gas shipping.
The further escalation followed the collapse of a fragile ceasefire reached in June between Tehran and Washington and the Houthis attacks on Saudi Arabia’s civilian and economic infrastructure, renewing fears of a wider regional conflict and raising concerns over disruptions to energy shipments.
Following the increase announced on Friday, petrol is now being sold at Rs391.22 per litre, while the price of high-speed diesel has risen to Rs421.45 per litre, following hikes of Rs6.88 and Rs5.62 per litre, respectively. According to the notification — a copy of which is available with Geo News, shops, markets, shopping malls, bazaars, departmental stores, grocery, general and kiryana stores must close by 9pm.
Meanwhile, the notification said that marriage halls, marquees and all commercial venues hosting festive events must close by 10pm. Restaurants, cafés, eateries and food outlets must close by 11pm, though takeaway and home delivery services are exempt.
Only a single dish shall be served at all marriage-related functions and events.
On the other hand, pharmacies, hospitals, clinics, medical laboratories, standalone bakeries, tandoors, milk and dairy shops, fuel and CNG pumps, electric vehicle charging stations, gyms, sports facilities, IT companies and call centres are fully exempt from closing time restrictions.
Separately, the government slashed official vehicle fuel by 50%, banned all foreign travel for three months and also imposed a complete ban on vehicle and durable goods purchases, restricting business closing timings across the country.
The measures also limit government spending through a 5% cut in the non-essential recurring expenditure budget for the entire fiscal year 2026-27.
Official vehicles will receive only half their usual fuel allocation for three months. The measure excludes operational vehicles of the Armed Forces, Civil Armed Forces, law enforcement agencies, essential services and FBR — though administrative and non-operational formations of these entities will still be subject to the cut. Development projects are exempt from this measure.
A complete ban has been imposed on the purchase of all types of vehicles and durable goods by government departments, with the exception of IT procurements. Development projects are also exempt from these bans.
