The prime minister also decided to stop using special plane for foreign visits or domestic travelling and use business class.
Police said PML-N leaders and workers have been booked for taking the rally in violation of law.
Emphasising on the need to resume stalled composite dialogue between Pakistan and India, President Asif Ali Zardari has said recent ceasefire violations along Line of Control should not be allowed to derail the normalisation process between the two countries.
Extensive firing continues in the area and heavy contingents of elite force have been deployed.