• Dar-led panel to review, report progress; Friday declared additional weekly holiday
• Sindh also closes schools until March 31; Punjab notifies 21-day closure
• Sindh’s austerity plan covers shorter workweek, 50pc cut in fuel allocation, ban on official events
ISLAMABAD / KARACHI: Prime Minister Shehbaz Sharif on Tuesday directed all federal ministries and divisions to strictly adhere to the “war austerity plan”, declaring that all government departments would undergo third-party audits to assess whether the plan was being implemented in its true spirit.
“The austerity measures taken by government departments should undergo a third-party audit to assess their impact and ensure transparency and effectiveness,” PM Shehbaz said while presiding over a meeting to review the austerity plan that he had announced a day earlier to cope with the situation arising from the global energy and oil crisis triggered by the US-Israel war on Iran.
The premier emphasised that Pakistan must ensure economic stability despite regional and global challenges. He approved a four-day workweek, declaring Friday an additional weekly holiday as part of a broader strategy to conserve energy and reduce expenditure.
A special committee, headed by Deputy Prime Minister Ishaq Dar, would oversee implementation of the measures by reviewing and filing progress reports to the government on a daily basis, PM Shehbaz told participants in the meeting. He directed the federal ministries, divisions and institutions to send photos of the vehicles, taken off the road under the austerity policy, to the cabinet division.
It was decided that the ministries would submit daily and weekly reports to the special committee on the implementation of energy-saving measures and workforce management. He also asked the ministries to send reports to PM Office on steps taken to make efficient arrangements for work-from-home initiative.
Besides Deputy PM Dar, Minister for Climate Change Musadik Malik, Finance Minister Muhammad Aurangzeb, Minister for Economic Affairs Ahad Khan Cheema, Minister for Information Attaullah Tarar, Minister of State for Finance and Railways Bilal Azhar Kayani, and senior government officials attended the meeting.
Meanwhile, the federal directorate of education issued a notification announcing that all schools and colleges across the federal capital will remain closed in the latter half of this month, while varsity classes would be conducted online.
Sindh austerity plan
Also, the Sindh cabinet on Tuesday approved a comprehensive austerity plan, including 16-day school closure, online classes for colleges and varsities, a 50pc cut in fuel allocation for official vehicles for two months, grounding 60pc of government vehicles, four-day workweek except for essential services, banking, industry and agriculture, and certain restrictions on wedding ceremonies, official dinners and large ceremonial events.
While briefing the media on measures to mitigate the impact of the US-Israel-Iran conflict on Pakistan’s economy, senior minister Sharjeel Inam Memon said the austerity plan was expected to save billions of rupees.
He said schools would observe spring holidays while other educational institutions would shift to online classes from March 16 to 31.
The government also imposed spending restrictions, including a 20pc reduction in non-essential expenditure, a ban on purchasing new vehicles, and limits on foreign travel. “The measures are expected to save more than Rs12 billion,” he said.
A 50pc cut in fuel allocations for official vehicles for two months would save an estimated Rs960.55 million.
The cabinet also approved a four-day workweek to reduce fuel consumption. Both government and private offices will follow the shorter week, while essential services, banking, industry, and agriculture will continue normal operations.
Mr Memon said ministers, advisers, and special assistants had voluntarily decided to waive their salaries and allowances for three months. A 25pc voluntary salary cut for provincial legislators had also been proposed, he added.
According to the minister, a complete ban on purchasing new vehicles and government durables would remain in force until June. Procurement of IT equipment would require approval from relevant authorities. The Sindh government also banned official foreign visits, except in unavoidable cases. Ministers, legislators, and officials travelling abroad on official duty must fly economy class.
Official dinners and large ceremonial events have also been banned, except for receptions for visiting foreign delegations. Government departments have been directed to hold meetings virtually to reduce costs.
Workweek, speed limits
To cut commuting-related fuel use, up to 50pc of government staff may work from home on alternate days, except in essential services.
Both public and private offices will observe a four-day workweek, with adjustments to working hours if needed. The policy will not apply to banking, industry, or agriculture, which will continue normal operations.
The government also announced public measures to curb fuel consumption, with reduction in speed limits to 90-100km/h on motorways and 65-80km/h on highways.
The number of guests at wedding functions and public gatherings has been capped at 200, with the one-dish rule strictly enforced.
Punjab notifies 13-point plan
Also, the Punjab government on Tuesday issued a 13-point notification covering similar austerity steps including four-day workweek and ‘work from home’ arrangements as well as immediate closure of educational institutions till the end of this month with a provision for online classes.
The Punjab government also established “district petroleum monitoring committees” at the district level to monitor availability and distribution of petroleum products. The committees were instructed to coordinate with district administrations and law enforcement agencies to implement a “track and trace system”, established by the Punjab IT Board, besides ensuring the availability of essential commodities and strict monitoring of transport fares.
With input from Mansoor Malik in Lahore
Published in Dawn, March 11th, 2026
