Pakistan's new government has banned the discretionary use of state funds and first-class air travel by officials and leaders, including the president and the prime minister, as part of its austerity drive.

The decisions were made at a Cabinet meeting, chaired by Prime Minister Imran Khan yesterday, according to Information Minister Fawad Chaudhry.

"It has been decided that all the top government officials, including the president, prime minister, chief justice, senate chairman, speaker national assembly and the chief ministers will travel in club/business," he told media.

To a question, Chaudhry said that the Army chief was not allowed first class travel and always used business class.

He said that the discretionary allocation of funds by the prime minister and the president and other officials was also stopped by the Cabinet. The prime minister also decided to stop using special plane for foreign visits or domestic travelling and use business class.

After his victory in the July 25 general election, Khan decided not to use palatial Prime Minister House and instead live in a small portion of it that was previously used as the residence by the military secretary to the prime minister.