Government extends austerity, fuel conservation measures until June 13

Prime Minister Shehbaz Sharif has approved extending nationwide austerity and fuel conservation measures until June 13, as the government seeks to manage economic pressure linked to rising global oil prices and the Middle East conflict.

According to a notification issued by the Cabinet Division, the decision was taken following recommendations from the committee overseeing the implementation of austerity and fuel-saving measures.

The restrictions were originally introduced on March 9 after US-Israeli strikes on Iran disrupted global oil supplies.

Under the extended measures, fuel allowances for official vehicles will continue at 50% of previous levels, while 60% of government vehicles will remain off the roads. Operational vehicles, including ambulances and public transport buses, have been exempted.

The government has also maintained restrictions on foreign visits by ministers and officials except for travel considered necessary in the national interest.

The four-day working week for government offices from Monday to Thursday will continue under the revised plan.

The austerity measures also include a 25% salary reduction for parliamentarians, while employees of state-owned enterprises and government-supervised institutions face salary cuts ranging from 5% to 30%.

Government departments have additionally been directed to reduce non-essential expenditure by 20%.

Officials said up to 50% of government employees would continue working from home on alternate days, except those employed in essential services.

Authorities have also instructed officials to travel in economy class and prioritise virtual meetings instead of physical gatherings to reduce expenses.

The prime minister assigned the Intelligence Bureau to conduct a third-party audit to monitor compliance with the austerity measures.

Meanwhile, targeted relief measures, including fuel subsidies for motorcyclists, farmers and transporters, have also been extended to reduce the impact of higher fuel prices.