ISLAMABAD: The federal government has extended austerity measures for the current fiscal year 2026-27 as part of efforts to control public expenditure.
The Ministry of Finance on Tuesday issued a notification maintaining the austerity policy during the ongoing fiscal year. The measures include abolishing all posts that have remained vacant for the past three years, maintaining a ban on the creation of new posts and continuing restrictions on the purchase of vehicles, machinery and equipment, among other measures.
Similarly, restrictions on the purchase of machinery and equipment have been continued. The ban on government-funded medical treatment abroad and unnecessary foreign visits at government expense will also remain in place. However, the restrictions will not apply to the purchase of ambulances, vehicles equipped with other medical facilities, fire-fighting vehicles, buses and vans for educational institutions, garbage collection vehicles and motorcycles.
The notification was issued following the federal cabinet’s decision to continue austerity measures during FY2026-27.
