The Finance Division has issued a notification enforcing strict austerity measures for FY2025–26, including a ban on car purchases, creation of new posts, and non-essential foreign travel.
Approved by the federal cabinet on June 10, the measures extend previous directives from 2023 and 2024 and apply to all federal ministries, departments, state-owned enterprises (SOEs), and regulatory bodies.
Key restrictions include a complete ban on the purchase of all vehicles, except ambulances, fire trucks, solid waste vehicles, educational buses, and motorcycles.
Authorities have decided against the procurement of machinery and equipment, except for hospitals, laboratories, agriculture, mining, and schools.
There will be no creation or continuation of contingent and temporary posts.
Officers will not be allowed to go for treatment abroad at government expense. All non-obligatory foreign visits will no longer be funded by the government.
Meanwhile, posts vacant for over three years will be abolished. Exemptions apply to PSDP-funded projects.
In the case of SOEs, these restrictions are binding under the State-Owned Enterprises Act, 2023.