ISLAMABAD / KARACHI – In a major move to tackle the looming energy crisis and implement a strict austerity plan, the Federal Cabinet Division has issued a notification mandating a three-day weekly holiday and a “Work From Home” (WFH) policy for both public and private sectors. Following the Prime Minister’s directives, the new measures aim to conserve fuel and reduce government expenditures across all federal institutions, ministries, the judiciary, and defense establishments.
Key Highlights of the Austerity Plan
The government has implemented a four-day workweek for offices, where 50% of the staff in non-essential departments will work from home on alternating days. The private sector is also directed to adopt a 50% WFH policy and a four-day workweek, though banking, industrial, and agricultural sectors remain exempt. Additionally, 60% of government vehicles will be grounded for two months, and fuel quotas for all officials have been slashed by 50%. A complete ban has been placed on foreign visits for Cabinet members and parliamentarians, with economy class being the only option for essential travel. For education, all schools will remain closed for spring break from March 16 to March 31, 2026, while colleges and universities must shift entirely to online classes.
Social and Public Regulations
The notification introduces strict protocols for public gatherings and transport. Wedding guest lists are now capped at 200 people with a “One-Dish” rule enforced. To optimize fuel consumption, motorway speed limits have been reduced to 90–100 km/h, while highway limits are set between 65–80 km/h.
Financial Cuts and Salary Reductions
To bridge the economic gap, Cabinet members and provincial ministers will voluntarily forego two months’ salary and allowances. There is a 25% voluntary cut in salaries for all federal and provincial assembly members for two months. High-ranking officers in Grade 20 and above, with salaries exceeding Rs. 300,000, will contribute two days’ pay. Furthermore, a total ban on the purchase of new vehicles and durable goods is in place until June 2026. The Cabinet Division has urged provincial governments to adopt these measures immediately to ensure national unity during this crisis.
