What happened
The federal government has withdrawn the fuel-conservation restrictions and additional austerity measures it imposed on 9 March 2026 during the war-driven oil crisis, according to a Cabinet Division notification reported on Saturday.
The notification said Prime Minister Shehbaz Sharif had approved the termination of all fuel-conservation and additional austerity measures notified by the Cabinet Division from time to time since 9 March, with immediate effect. The one exception is the closing times for markets and bazaars.
Under the retained schedule, shops, markets, shopping malls, bazaars, departmental stores and general stores are to shut by 9pm. Marriage halls, marquees, commercial venues and festive events are to close by 10pm. Restaurants, cafes and food outlets may stay open until 11pm, with home delivery and takeaway exempt.
Pharmacies, hospitals, clinics, laboratories, bakeries, tandoors, milk shops, petrol and CNG pumps, electric-vehicle charging stations, gyms, support facilities, IT companies and call centres remain exempt. The notification said austerity measures that were in force before 9 March and were notified by the finance and cabinet divisions would stay in place.
Why it matters
The 9 March package was the government’s broad response to an oil shock that pushed crude above $100 a barrel and disrupted shipping through the Strait of Hormuz. It included a 50 per cent cut in government vehicle fuel allocations, the grounding of part of the official fleet, a move to a four-day working week, work-from-home orders, a two-week school closure, salary deductions and a ban on foreign trips by ministers and officials.
Withdrawing the measures follows the easing of the regional crisis after the US-Iran Islamabad agreement and the record fuel price cuts announced on 19 June, when the government reduced petrol by Rs74 and diesel by Rs67 per litre. KhabarWire reported that the 9 March austerity plan was introduced to cut state fuel use, and that the 19 June price cut passed falling global oil prices on to consumers.
What is still uncertain
The notification as reported does not say whether salary deductions already applied under the March package will be repaid or reversed, how the four-day working week and work-from-home orders are to be unwound, or whether the school closure and other education measures have lapsed. It also does not set out a review date for the retained market closing hours.
Sources & reporting notes
This is a summary of published reporting, not independent reporting. Details are as carried by the cited source, which was reviewed on 2026-06-20.
- Radio Pakistan — "Federal government decides to withdraw restrictions regarding fuel conservation"20 June 2026 · The Cabinet Division notification, the prime minister's approval, the retained market and bazaar closing hours and the list of exempted businesses.
- KhabarWire — "PM Shehbaz unveils austerity plan as oil shock hits Pakistan"9 March 2026 · Background on the fuel-conservation and austerity measures that were withdrawn.
