The federal government is considering bringing back Fuel conservation and austerity measures to reduce pressure on Pakistan’s economy. Officials said the proposals could be introduced this week or next after approval from the federal cabinet.
The move comes as global oil prices continue to rise due to renewed tensions in the Middle East. Higher international oil prices have increased concerns about Pakistan’s import bill and foreign exchange reserves.
Prime Minister Shehbaz Sharif has already discussed the proposed plan with relevant officials. The recommendations are expected to be presented before the federal cabinet for formal approval in the coming days.
The government wants to maintain foreign exchange reserves equal to at least three months of import coverage. Officials believe the proposed Fuel conservation measures could help reduce unnecessary spending and lower the country’s oil import costs.
Several steps are under consideration as part of the new austerity plan. One proposal is to restore a four-day working week for government offices. Another suggestion is to reduce staff attendance by 50 percent in public offices.
The government is also considering limiting the use of official vehicles. Greater use of virtual meetings is another option under review. Restrictions on official foreign travel and cuts in non-essential public spending are also being discussed.
Authorities are also reviewing highway speed limits to reduce Fuel consumption. Officials believe lower speeds can improve fuel efficiency and reduce overall petroleum demand. Additional spending reductions in selected public sector departments are also part of the proposal.
These conservation measures were first introduced in March after instability in global oil markets caused by tensions near the Strait of Hormuz. The restrictions were later withdrawn in June after regional conditions improved.
Meanwhile, the government has clarified that the recently introduced daily petroleum pricing system does not mean complete deregulation of Fuel prices. Officials stressed that the government will continue to control key pricing components.
Under the revised pricing mechanism, petrol and high-speed diesel prices will only be updated on working days from Monday to Friday. Prices announced on Friday will remain effective throughout the weekend and continue until Monday.
The Oil and Gas Regulatory Authority (OGRA) will continue calculating fuel prices every day. It will submit recommendations to the Petroleum Division, which will issue the official notifications. OGRA will also publish detailed pricing calculations on its website to improve transparency.
Officials said the government will continue regulating important elements of fuel pricing. These include the petroleum levy, climate support levy, customs duties, freight equalization, dealer margins, and supply management.
The government also plans long-term reforms for Pakistan’s energy sector. These include encouraging investment in oil storage facilities along the country’s coastline. However, officials said the immediate focus remains protecting foreign exchange reserves, which fell to around $22.67 billion by July 10 from nearly $24 billion earlier in the month.
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The proposed Fuel conservation measures are aimed at reducing import costs while helping Pakistan manage economic challenges during a period of global uncertainty.
