PM Shehbaz meets President Zardari; extends national austerity drive until June 13 

May 12, 2026 | Economy, Public Policy

ISLAMABAD, May 12 — Prime Minister Shehbaz Sharif on Monday formally extended the country’s stringent austerity and fuel conservation measures until June 13, 2026. The decision comes as the government continues to manage the economic fallout from the ongoing conflict in the Middle East. Simultaneously, the Premier held a high-profile meeting with President Asif Ali Zardari amid intensifying rumors regarding a potential 28th Constitutional Amendment, which reportedly seeks to centralize several provincial powers.

Quick Facts

  • Austerity measures, including a 50% cut in official fuel allowances, are extended to June 13.
  • 60% of all official government vehicles remain grounded to conserve resources.
  • A four-day work week (Monday–Thursday) continues for government offices.
  • A complete ban remains on non-essential foreign visits for ministers and officials.
  • Fuel subsidies for motorcyclists and public transport have been extended by one month.
  • Rumors suggest a 28th Amendment may target the rollback of the 18th Amendment’s provincial autonomy.

The Cabinet Division notification clarified that essential services, including hospitals, ambulances, and public buses, remain exempt from these cuts. The austerity drive is part of a broader effort to cushion the national economy against global oil price shocks and supply chain disruptions caused by the regional war. While banks and the industrial sector maintain regular hours, the government’s internal operations have been significantly scaled back to reduce the fiscal deficit ahead of the upcoming federal budget.

The meeting between the Prime Minister and President Zardari also touched upon regional security and the martyrs of Marka-i-Haq. Despite the official focus on “relief for the common man,” political circles are buzzing with talk of the 28th Amendment. Insiders suggest that while the federal government may wish to reclaim control over subjects like health and education, President Zardari is reportedly hesitant, preferring to delay such divisive legislation until after the budget is passed on June 8.

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