Dhaka, April 3 -- The government has announced a series of sweeping austerity measures, including suspension of interest-free car loans for officials and a 30% cut in fuel consumption for official vehicles, to reduce public expenditure amid mounting economic pressure.

The decisions were taken at a Cabinet meeting held on Thursday night at the Jatiya Sangsad complex with Prime Minister Tarique Rahman in the chair, and disclosed at a Cabinet Division press briefing on Friday.

As part of the measures, interest-free loans for purchasing vehicles by public servants have been suspended until further notice.

Under the existing policy, officials with the rank of deputy secretary and above are entitled to interest-free loans of up to Tk 30 lakh...