Government extends austerity measures until June 30 and relaxes opening hours

The government on Wednesday extended a series of austerity measures until June 30 and allowed grocery stores and Kiryana stores to remain open until 10 p.m., following a meeting chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar in Islamabad.

Earlier this month, the federal government relaxed business closing hours as part of revised energy-saving measures, citing rising temperatures and longer daylight hours in summer. Under the changes announced on June 3, stores, markets and shopping malls were allowed to remain open until 9 p.m., while restaurants and food outlets were allowed to operate until 11 p.m. Wedding halls and marquees were allowed to stay open until 10 p.m.

The decisions were taken at a meeting of the Committee for Monitoring and Implementation of Additional Fuel Saving and Austerity Measures, which also considered extending the measures which were due to expire on June 13.

According to an official statement, the commission “examined several cases submitted by various ministries and divisions requesting exemptions from the applicability of certain austerity measures” and finalized its recommendations.

“It was also decided that the consular attestation services of the Ministry of Foreign Affairs and its liaison offices at Quetta, Karachi, Peshawar, Gujrat and Lahore would also remain operational on Fridays to facilitate the public,” the statement added.

Read: Government revises market hours, citing longer daylight hours and rising temperatures

The commission further recommended extending the duration of some austerity measures that were due to expire later this week.

“The committee further recommended extending the period of applicability of the additional austerity measures whose expiry date had been notified as June 13, 2026 until June 30, 2026,” the statement said.

In a move affecting retailers, the committee approved revised hours of operation for stand-alone grocery stores and neighborhood convenience stores.

“The committee also decided to extend the closing time of standalone grocery stores and Kiryana stores to 10:00 p.m. on all days of the week, including Saturdays and Sundays,” the statement said.

The meeting was attended by the ministers of petroleum, climate change, IT and telecommunications; the Special Assistant to the Prime Minister (SAPM) in charge of Finance; the Special Assistant to the Deputy Prime Minister (SADPM); the Secretaries of Cabinet, Commerce, Petroleum and Information Technology and Telecommunications; as well as senior officials from the Ministry of Foreign Affairs and other relevant ministries and divisions.

Learn more: ICTs force early closure of markets

Austerity

The austerity measures were introduced after a sharp escalation in tensions between Iran, Israel and the United States disrupted global energy markets. Following the military exchanges and Iran’s subsequent closure of the Strait of Hormuz, international oil prices soared, increasing Pakistan’s import bill and putting pressure on domestic fuel prices.

In response, the government raised oil prices several times, with the largest increase occurring in April. Officials said the adjustments were necessary to reflect rising international oil prices and ensure continued fuel supplies.

In March, to curb fuel consumption and reduce energy costs, the federal government imposed a series of austerity measures in Punjab, Khyber-Pakhtunkhwa, Balochistan, Islamabad, Gilgit-Baltistan and Azad Jammu and Kashmir. These included earlier closing times for markets and shopping malls, additional weekly leave for government offices, reductions in free fuel allowances for ministers, and restrictions on the use of official vehicles.

Restrictions were temporarily eased ahead of Eid, but were reinstated from April 1 as the government sought to manage the impact of the ongoing fuel crisis.