FBR implements a 50% fuel reduction for official vehicles as the government introduces new austerity and expenditure-control measures.
ISLAMABAD: The Federal Board of Revenue (FBR) has imposed restrictions on fuel consumption for its officials as part of the federal government’s latest fuel conservation and austerity measures.
The FBR has circulated a Cabinet Division notification on additional austerity measures to senior officials across Inland Revenue, Customs and other formations, directing them to ensure implementation in letter and spirit.
In a communication addressed to chief commissioners of Regional Tax Offices (RTOs), Corporate Tax Offices (CTOs) and Large Taxpayer Offices (LTOs), chief collectors and collectors of Customs, commissioners of AEOI, Benami and Appeals zones, as well as director generals and directors of Customs and Inland Revenue, the FBR enclosed the Cabinet Division’s notification for compliance.
The communication also covered PRAL offices, computer wings, data centres and call centres.
50% fuel reduction for official vehicles
According to Cabinet Division Notification No. 7-2/2026-Mind dated September 17, 2026, the federal government has ordered a 50% reduction in fuel provision for official vehicles for three months.
The notification stated that operational vehicles belonging to the armed forces, civil armed forces, law enforcement agencies, essential services and the FBR would remain excluded from the general fuel reduction.
However, the measure will apply to vehicles used by administrative or non-operational formations of these entities.
The decision was taken after consideration of recommendations made by the committee responsible for monitoring and implementing fuel conservation and additional austerity measures.
5% cut in non-ERE budget
The federal government has also ordered a 5% reduction in non-ERE budget allocations for the entire financial year 2026-27.
The reduction will be implemented through monthly deductions and will also apply to foreign missions and officers or officials from various occupational groups and services posted abroad.
However, the government will continue to meet obligations relating to official rents, educational fees and medical care arrangements.
Government imposes ban on vehicle purchases
Under the austerity package, the government has imposed a complete ban on the purchase of vehicles of all types.
A separate restriction has also been placed on the purchase of durable goods, although IT procurement is exempted from the ban.
The measures are aimed at curbing government expenditure and conserving financial resources amid pressure on public finances.
Foreign travel restricted for three months
The Cabinet Division has also prohibited foreign visits and travel for three months, including obligatory visits, subject to limited exceptions.
Exemptions include scholarships offered by international development partners, training and courses arranged through the Economic Affairs Division, and programmes conducted under institutional agreements with the Government of Pakistan.
For obligatory and important events, Pakistan’s ambassador or high commissioner will represent the country where appropriate.
In unavoidable cases where government officials are required to travel abroad, ministries, advisers, ministers of state, special assistants to the prime minister, parliamentary functionaries and other government officials will be required to travel in economy class only.
Government meetings to shift to teleconferencing
The government has further directed ministries and departments to hold meetings through teleconferencing wherever possible, except for intra-city meetings.
Official dinners have also been prohibited, except when organised for visiting foreign delegations.
The austerity package additionally prohibits government-funded official seminars, training programmes and conferences.
Where such events are considered unavoidable, government facilities, including auditoriums, committee rooms and other official venues, must be used instead of externally funded or commercial arrangements.
The Cabinet Division has also directed that single-dish meals be served at all meeting-related functions and events.
The FBR’s circulation of the notification brings the federal government’s latest fuel conservation and expenditure-control measures into the tax administration, with the relevant formations instructed to ensure strict compliance.