The federal government has introduced new measures to reduce fuel consumption and control official spending during the fiscal year 2026-27.
Under the latest decision, operational vehicles of the Armed Forces have been exempted from a 50 percent fuel reduction. However, administrative and non-operational military vehicles will remain covered by the cut.
The 50 percent reduction applies to official vehicles for a period of three months. The government has also specified several other categories that will not face the fuel restriction.
Operational vehicles of the Civil Armed Forces are exempt from the reduction. Vehicles used by law enforcement agencies and essential services will also remain exempt.
The Federal Board of Revenue, commonly known as FBR, has also been included among the organizations whose operational vehicles are exempt from the fuel reduction.
The government has taken these measures as part of broader efforts to control official expenditure. The restrictions cover both fuel use and several categories of government purchases.
In addition to the fuel cut, the government has ordered a monthly reduction in Non-ERE budgetary spending. The reduction has been set at 5 percent for the fiscal year 2026-27.
The spending cut will also apply to Pakistan’s foreign missions. However, certain essential expenses will continue to be covered.
These include rent payments, education fees, and medical expenses. The government has therefore excluded these expenses from the reduction.
The new measures also restrict the purchase of vehicles and durable goods. Government departments have been directed not to purchase vehicles of any type.
The ban also covers the purchase of durable goods. However, IT-related purchases have been excluded from the durable goods restriction.
This exemption allows government departments to continue necessary information technology purchases. Other durable goods purchases will remain restricted under the new instructions.
Development projects have been given separate treatment under the government’s latest measures. Such projects will not be affected by the fuel reduction.
They are also exempt from the 5 percent Non-ERE budget cut. The restrictions on vehicle purchases will not apply to development projects either.
Similarly, development projects will remain outside the ban on durable goods purchases. This provides an exemption for spending directly connected with approved development activities.
The latest instructions distinguish between operational requirements and administrative spending. Critical operational vehicles will continue to receive fuel support.
At the same time, administrative and non-operational vehicles will face reduced fuel allocations. The policy therefore places greater restrictions on routine government operations.
The FBR exemption for operational vehicles is part of the broader list of essential operational categories. Other exempt vehicles include those used for law enforcement and essential services.
The government’s measures cover several areas of expenditure. These include fuel consumption, recurring budgetary spending, vehicles, and durable goods.
The restrictions are scheduled to operate within the specified fiscal and three-month periods. Relevant government departments will need to follow the instructions accordingly.
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The measures are aimed at reducing unnecessary government expenditure. They also separate essential operational and development needs from routine administrative spending.
