Pakistan’s federal government has imposed strict new austerity measures requiring all shops, markets, and shopping malls to close by 9pm daily, as soaring fuel prices triggered by Middle East conflict force emergency conservation efforts.
The directive, initially rolled out in Islamabad, is being encouraged for adoption across all provinces as the country grapples with a sharp spike in energy costs. Petrol now sells at Rs391.22 per litre, while high-speed diesel has climbed to Rs421.45 per litre following recent hikes of Rs6.88 and Rs5.62 respectively.
The price surge stems from escalating volatility in global oil markets, driven by renewed hostilities in the Middle East and the closure of the Strait of Hormuz—a critical shipping channel for oil and gas. A fragile ceasefire between Tehran and Washington collapsed in recent weeks, and fresh Houthi attacks on Saudi Arabia’s civilian and economic infrastructure have intensified fears of a broader regional war and severe disruptions to energy supplies.
Under the new rules, shops, markets, bazaars, departmental stores, and grocery outlets must shut their doors by 9pm. Marriage halls and commercial event venues face a 10pm deadline, while restaurants, cafés, and eateries can operate until 11pm, though takeaway and delivery services remain unrestricted. Wedding functions are now limited to serving a single dish.
Certain essential services are exempt from the closing time restrictions, including pharmacies, hospitals, medical labs, standalone bakeries, tandoors, milk shops, fuel stations, EV charging points, gyms, IT companies, and call centres.
Beyond retail closures, the government has slashed official vehicle fuel allocations by 50 percent for three months, banned all foreign travel for the same period, and prohibited the purchase of vehicles and durable goods by government departments. IT procurement and development projects are exempted from the purchase ban.
Foreign travel is now completely restricted, except for scholarships from international development partners and training arranged through the Economic Affairs Division. In unavoidable cases, Pakistan’s ambassadors will represent the country at key events. Ministers and senior officials must fly economy class when travel is absolutely necessary.
Official dinners are banned except for foreign delegations, and meetings are to be conducted via teleconference wherever possible. Government-funded seminars, trainings, and conferences are prohibited unless held at government venues like auditoriums.
The government has also imposed a five percent cut in non-essential recurring expenditure for the entire 2026-27 fiscal year. Operational vehicles of the Armed Forces, Civil Armed Forces, law enforcement, and essential services are exempt from fuel cuts, though administrative formations within these entities will still face reductions.
The measures represent one of the most comprehensive austerity packages in recent years, directly impacting businesses, consumers, and government operations as Pakistan seeks to weather the energy crisis and conserve dwindling resources amid global uncertainty.
