Pakistan unveils fuel-saving austerity plan amid escalating Middle East crisis

Pakistan on Monday unveiled a series of austerity measures aimed at conserving fuel as global oil prices surge above $100 per barrel following the US-Israel war on Iran. The steps affect government operations, salaries, official travel, and public and private sector workplaces, while also introducing adjustments in education delivery nationwide.

Under the plan, official vehicle fuel allowances will be cut by 50 percent for two months, though ambulances and public buses are exempt. Government departments will halt 60 percent of vehicle usage, while federal cabinet members will forgo their salaries, and parliamentarians’ pay will be reduced by 25 percent. Senior officials earning above Rs300,000 (BS-20) will contribute two days’ salary toward relief efforts. Departmental expenditures will drop 20 percent, and purchases of vehicles, furniture, and air conditioners for government offices are suspended. Ministers, advisers, and officials are barred from foreign trips except when essential for national interests.

Speaking to the nation, Prime Minister Shehbaz Sharif directed offices in both the public and private sectors to implement a 50 percent work-from-home policy, with workplaces opening four days a week; essential services such as banking, agriculture, and industry remain exempt. Schools will observe a two-week break, while universities and colleges shift to online classes. Meetings, seminars, and conferences are encouraged to be held via teleconferencing or on government premises, and official dinners and Iftar events are prohibited.

PM Shehbaz emphasized that Pakistan is grappling with the dual challenges of regional conflict and terrorism along its western borders, while continuing diplomatic efforts to stabilize the region. He condemned the US-Israel attacks on Iran, which led to the killing of Supreme Leader Ayatollah Ali Khamenei, as well as Iran’s retaliatory strikes affecting Gulf countries.

The premier warned against oil hoarding and profiteering, stating violators would face legal action. He assured citizens that, despite rising fuel prices, the government is taking measures to shield the public from the full economic impact. He noted that Pakistan maintains adequate petrol and diesel reserves and has prepared contingency plans to sustain supply chains.

The announcement comes after the government faced criticism for raising petrol and diesel prices by up to Rs55 per litre, amid disruptions in Middle East energy exports, including collapsed oil production in Iraq and blockages in the Strait of Hormuz, a key global shipping lane. PM Shehbaz urged all segments of society, particularly the elite, to lead by example in adopting austerity measures to protect national interests and mitigate the burden on ordinary citizens.