Pakistan Extends Austerity Measures Until June 30, 2026

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The federal government of Pakistan has extended its series of austerity measures until June 30, 2026, while relaxing operating hours for certain businesses following a meeting chaired by Deputy Prime Minister and Finance Minister Ishaq Dar in Islamabad. Standalone grocery and neighbourhood kiryana stores are now permitted to remain open until 10:00 pm daily, including weekends, providing some relief to retailers while maintaining energy conservation objectives.

Revised Business Hours for Retailers

Earlier in June, revised business hours allowed shops, markets, and shopping malls to operate until 9:00 pm, restaurants and food outlets until 11:00 pm, and marriage halls until 10:00 pm, reflecting adjustments to rising summer temperatures and longer daylight hours. The latest extension ensures that measures initially set to expire on June 13 remain in effect, as the government seeks to balance public convenience with the ongoing need to curb fuel consumption.

Public Services Adjusted for Citizens

The committee overseeing these measures also confirmed that consular attestation services at the Ministry of Foreign Affairs and liaison offices in Quetta, Karachi, Peshawar, Gujrat, and Lahore will now operate on Fridays, easing access for citizens. These decisions follow extensive review of requests submitted by various ministries for exemptions from certain austerity policies.

Reason Behind the Austerity Measures

The austerity measures were initially introduced in response to global energy market disruptions, including tensions between Iran, Israel, and the United States, which led to surging international oil prices. To manage the domestic impact, the government had previously raised petroleum prices, imposed earlier office closures, restricted the use of official vehicles, and reduced free fuel allocations for ministers. Temporary relaxations during Eid were reinstated from April 1, 2026, as fuel supply challenges continued.

Impact on Citizens and Retailers

By extending these measures, the government aims to ensure uninterrupted fuel supplies, maintain energy efficiency, and support retailers and public services under regulated operational hours. While citizens face continued energy-saving policies, the slightly eased business hours provide a balance between economic activity and fiscal responsibility.

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