Pakistan Tightens Austerity: Early Market Closures, One‑Dish Weddings, and Deepening Fuel Crunch

On September 17 the cabinet announced a string of blunt measures aimed at curbing an ever‑tightening fuel crunch that’s been gnawing at Pakistan’s economy for months.

First up, markets and shopping malls must dim the lights by 9 pm. The rule isn’t just a suggestion; traders are expected to shut down their stalls, and anyone caught staying open after the deadline could face penalties.

Even the party scene isn’t safe from the squeeze. Wedding halls and other event venues now have to close their doors by 10 pm, and restaurants, cafés and food outlets must call it a night at 11 pm. There’s a small loophole, though – take‑away joints and home‑delivery services can keep cooking, because apparently feeding people at home is a higher priority than keeping the lights on in a banquet hall.

And because the government wants to trim the fat wherever it can, official vehicles will run on half the fuel they used to get. For the next three months the fuel allocation for government cars is cut by 50 %, and ministries are barred from buying any new vehicles. The only exceptions are the armed forces, police, civil defence and the Federal Board of Revenue – basically anyone whose work is deemed “essential”.

Travel plans for ministers, advisers, parliamentarians and other officials have also been put on hold for three months. The rule is strict, but scholarships, certain training programmes and diplomatic missions that need to be abroad are still allowed to go.

On the price side, the government nudged petrol down by 43 paise to PKR 390.79 per litre, while diesel was nudged up by PKR 3.47 to PKR 424.92 per litre. The changes took effect on September 18, after a day of larger hikes that had caused a bit of a stir at the pumps.

To cushion the blow for everyday commuters, a targeted subsidy programme was launched, offering a PKR 100‑per‑litre discount to owners of motorcycles, rickshaws and small cars – but only up to a certain monthly limit.

The backdrop to all this is the volatile situation in West Asia. Disruptions in oil flows through the Strait of Hormuz and threats to Red Sea shipping routes, thanks to the Saudi‑Yemen‑Iran triangle, have left Pakistan nervous about its energy imports.

This isn’t the first austerity wave this year. Back in March, schools were temporarily closed, universities shifted online, and non‑essential government vehicles were grounded. The latest package simply digs deeper, touching everything from durable‑goods purchases (except IT equipment) to a 5 % cut in non‑personnel spending for FY 2026‑27.

All told, the government hopes these blunt‑force tactics will buy time, keep the lights on and, hopefully, prevent a full‑blown energy crisis from spilling over into daily life.