ISLAMABAD: The Finance Division has notified the continuation of austerity measures for the fiscal year 2025–26, following the approval of the Federal Cabinet on June 10.
The measures include a complete ban on the purchase of all types of vehicles, procurement of machinery and equipment, and creation of new posts.
The notification stated that the austerity measures will apply to all federal government attached departments, state-owned enterprises, and statutory bodies, including regulatory authorities. These measures had been previously approved and notified by the Finance Division and the Cabinet Division during earlier fiscal years.
For state-owned enterprises, the measures are considered directions of the federal government under Section 35 of the State-Owned Enterprises (Governance and Operations) Act, 2023. In the case of statutory bodies, the relevant provisions of their respective governing laws will apply.
According to the Finance Division’s earlier notification issued on September 4, 2024, the following bans will remain in effect until further notice: purchase of all vehicles, except operational ones such as ambulances, medically equipped vehicles, firefighting vehicles, buses and vans for educational institutions, solid waste vehicles, and motorbikes; procurement of machinery and equipment, except those needed for hospitals, laboratories, agriculture, mining, and schools; creation of new posts, including contingent paid or temporary posts; extension of contingent paid or temporary posts beyond one year; treatment abroad at government expense; and non-obligatory foreign visits funded by the government of Pakistan.
The notification also stated that all posts left vacant for the past three years will be abolished. However, the purchase of durable items and creation of posts under PSDP-funded projects are exempt from the ban.
The Finance Division confirmed that austerity measures already notified by the Cabinet Division through official memorandums dated February 28, 2023, will remain applicable during fiscal year 2025–26 unless modified or withdrawn by the Federal Cabinet.
