GILGIT: The Government of Gilgit-Baltistan has announced a series of austerity and fuel conservation measures in response to what officials described as a “fragile global situation.” The measures were approved by the cabinet through circulation and formally notified by the Gilgit-Baltistan Secretariat on March 11, 2026.
According to the notification issued by the General Administration Department (GAD), the steps will apply across all government establishments, including divisions, organizations, corporations, autonomous bodies, statutory authorities, and special institutions operating under the regional government.
Major austerity measures
Under the new policy, the government has ordered a 50 percent reduction in fuel provision for official vehicles for the next two months. The restriction will apply to vehicles used by government officials, except those required for essential services such as buses, ambulances, and motorbikes used for operational duties.
Additionally, 60 percent of official vehicles in government departments will be grounded for two months. Authorities have been instructed to promote carpooling, while Principal Accounting Officers will be responsible for ensuring implementation of the measure.
The notification also includes voluntary salary cuts for senior officials. The Chief Minister, cabinet ministers, and advisers have been requested to forego two days’ salary for the next two months. Government officers in BS-20 and above, or those earning PKR 300,000 or more per month, may also voluntarily contribute two days’ salary during this period. However, officials working in the health and education sectors are exempt from this arrangement.
To further reduce expenditures, the government has ordered a 20 percent reduction in the Non-ERE budget for the fourth quarter of the financial year 2025-26 for all government establishments.
Ban on vehicles, travel and purchases
The notification also imposes strict restrictions on government spending. A complete ban on the purchase of new vehicles of all types will remain in place until June 2026, with no exemptions allowed.
Similarly, a ban on the purchase of new durable items has been enforced until June 2026. Procurement of IT equipment will only be permitted after scrutiny by the GB IT Board and approval from the Austerity Committee.
The government has also announced a complete ban on foreign travel for official visits by cabinet ministers and government officials, regardless of the funding source. Only mandatory visits will be allowed.
Other cost-cutting measures include:
- No official dinners to be hosted, except in the case of visiting foreign delegations.
- Physical meetings banned, with departments directed to conduct meetings through online or virtual platforms to reduce travel and lodging expenses.
- Seminars, trainings, and conferences funded by the government will require prior approval from the Additional Chief Secretary (Development) to determine their necessity and priority.
- Government venues such as auditoriums and committee rooms will be used for approved events instead of external facilities.
The government stated that rightsizing exercises will continue under the already notified Staff Rationalization Committee.
Fuel conservation and work arrangements
As part of the fuel conservation plan, the government has also introduced changes in work arrangements.
Public sector departments have been directed to implement work-from-home arrangements for up to 50 percent of staff on alternate days, except for essential services. Departmental secretaries and heads will determine the staff eligible for the arrangement.
A four-day workweek will also be observed in government offices, though the policy will not apply to the banking sector and other essential services.
Private sector organizations have been advised to adopt similar measures, including:
- Work-from-home arrangements for up to 50 percent of employees, except essential staff.
- A four-day workweek with adjusted daily working hours where necessary.
- Payment of overtime allowances according to applicable rules if employees work on public holidays.
However, these measures will not apply to the banking, industrial, and agricultural sectors, according to the notification.
Spring holidays announced for schools
In a separate step linked to the conservation measures, the government has declared spring holidays for all schools from March 16 to March 31, 2026.
The notification clarifies that scheduled examinations will continue as planned and will not be affected by the closure.
Meanwhile, colleges and universities will shift to 100 percent online classes during this period.
Context
Officials say the measures are intended to reduce government expenditure and fuel consumption amid global economic uncertainties and rising energy costs. By cutting vehicle usage, limiting official travel, and introducing flexible work arrangements, the government aims to ease financial pressure while maintaining essential services.
The notification was issued by the Deputy Secretary (GAD), Gilgit-Baltistan, and circulated to key offices including the Governor’s Secretariat, the Chief Minister’s Secretariat, administrative secretaries, commissioners, and deputy commissioners across the region.
The government is expected to review the impact of these measures after the two-month period.
