Islamabad: (RightNow) The federal government announces the continuation of the austerity drive for the fiscal year 2026-27. The Ministry of Finance has issued a notification in this regard.

The federal cabinet has approved austerity measures applicable to federal departments, autonomous bodies, and regulatory authorities. Strict directives have also been issued for state-owned enterprises.

According to the Ministry of Finance, the austerity measures will be considered a mandatory constitutional directive of the federal government. The Austerity Committee is authorized to grant exemptions on a case-by-case basis for solid reasons.

This step is deemed necessary to control expenses. Under austerity, government institutions will exercise caution in their financial dealings.

It is noteworthy that the aim of the austerity drive is to improve financial discipline and reduce the wastage of national resources.