The federal government has exempted operational vehicles of the Armed Forces from its 50 percent fuel reduction for official vehicles, while administrative and non-operational military vehicles will remain subject to the cut.
The fuel reduction will apply to official vehicles for three months. Operational vehicles of the Civil Armed Forces, law enforcement agencies, essential services and the Federal Board of Revenue are exempt.
The government has also ordered a 5 percent monthly reduction in Non-ERE budgetary spending for FY2026-27. The cut will apply to foreign missions, although rent, education fees and medical expenses will continue to be covered.
The purchase of all types of vehicles and durable goods has been banned. IT-related purchases are exempt from the restriction on durable goods.
Development projects are exempt from the fuel reduction, Non-ERE budget cut and bans on vehicle and durable goods purchases.
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