What happened
Prime Minister Shehbaz Sharif has extended Pakistan’s nationwide austerity campaign until 13 June as the country continues to face economic challenges linked to tensions in the Middle East and rising global oil prices, The Nation reported.
The measures were initially introduced in March following the escalation caused by US-Israeli strikes on Iran, with the aim of reducing fuel consumption and cutting government spending.
According to a notification issued by the Cabinet Division, the extension was approved after reviewing recommendations from a committee responsible for monitoring fuel conservation and the implementation of austerity policies.
What the extension keeps in place
Under the revised directives, fuel allocations for official vehicles will continue at a 50 per cent reduction, while 60 per cent of government vehicles will remain off the roads. Restrictions on foreign travel by ministers and government officials have also been maintained, except for visits considered essential for national interests.
The four-day working week for public offices, from Monday to Thursday, will also remain effective. The policy does not apply to banks, essential services, agriculture or the industrial sector.
Authorities have additionally continued salary cuts for public officeholders and employees of state-owned organisations. Parliamentarians face a 25 per cent salary reduction, while staff in state-owned entities are subject to deductions ranging from 5 to 30 per cent. Departmental expenditure has been reduced by 20 per cent, and restrictions on the purchase of vehicles, furniture and other official equipment remain in place.
Audits and relief
Prime Minister Shehbaz has directed the Intelligence Bureau to conduct third-party audits to monitor compliance with the austerity measures, according to the report.
At the same time, targeted relief programmes, including fuel subsidies for motorcyclists, farmers and transport operators, have been extended to ease the burden of increasing fuel costs.
Why it matters
The extension keeps much of the government’s emergency belt-tightening in force for another month, signalling that Islamabad expects fuel-related pressure to persist. It also preserves the balance the government has struck between spending cuts and targeted subsidies as it manages the economic fallout of regional conflict.
What is still uncertain
The report did not quantify the savings from the extension or set out an exit plan beyond 13 June. The account of the notification, its provisions and the audit direction rests on The Nation’s report.
Sources & reporting notes
This is a summary of published material, not independent reporting. Source reviewed on 2026-05-11. The image is a contextual photograph and does not depict the 11 May 2026 notification.
- The Nation — "PM Shehbaz Sharif extends austerity measures until June 13 amid economic pressure"11 May 2026 · Reports the Cabinet Division notification, the retained fuel and spending cuts, salary reductions and the extended relief programmes.
