Federal govt extends austerity measures to curb government spending

ISLAMABAD: Federal government has decided to continue austerity measures during the current fiscal year as part of efforts to control public expenditure, according to official sources.

Sources said the federal cabinet has approved the continuation of cost-cutting measures, and the Cabinet Division has forwarded the decision to the Ministry of Finance for implementation. A formal notification is expected to be issued soon.

Under the decision, all federal government posts that have remained vacant for the past three years will be abolished, while the creation of new positions will remain prohibited.

The government will also maintain a ban on the purchase of all types of official vehicles, machinery and equipment during the current fiscal year.

Restrictions on government-funded overseas medical treatment and non-essential foreign travel for public officials will also remain in place.

The measures are part of the government’s broader strategy to reduce expenditures and strengthen fiscal discipline amid ongoing economic challenges.