Pakistan’s government has announced sweeping austerity measures, including a 20% cut in departmental spending and strict limits on official purchases and foreign travel, as rising global energy costs place increasing pressure on the country’s economy.

Under the new measures, the Government has imposed a ban on the purchase of vehicles, air conditioners, and furniture by public institutions. Restrictions have also been introduced on overseas travel by ministers and civil servants.

Officials said the move is aimed at conserving public resources and easing pressure on state finances amid growing economic challenges.

The announcement was made on Monday, days after Pakistan implemented a record fuel price hike. Petrol and diesel prices increased by 55 Pakistani rupees ($0.1971) per litre following a surge in global oil prices linked to the ongoing conflict in the Middle East.

Pakistan relies heavily on energy imports, making its inflation rate particularly vulnerable to fluctuations in international fuel prices.