The federal government has extended its austerity and fuel conservation measures in Pakistan until June 13. The decision comes amid ongoing uncertainty linked to tensions in the Middle East. Diplomatic talks between the United States and Iran are still stalled.
The Cabinet Division issued a formal notification on Monday. The extension was approved by Prime Minister Shehbaz Sharif. It was based on recommendations from the implementation committee.
Officials confirmed that fuel-saving measures will continue across government departments in Pakistan. A 50% cut in fuel supply for official vehicles remains in effect. This rule will continue throughout the extended period.
Reduced Use of Official Vehicles
The government has also decided to keep 60% of official vehicles off the roads. This step is part of broader cost-saving efforts. It aims to reduce unnecessary fuel consumption in Pakistan.
These austerity measures were first introduced on March 9. Prime Minister Shehbaz Sharif announced them in a televised address. This came shortly after a 20% increase in petrol and diesel prices.
Impact of Global Energy Situation
Fuel prices in Pakistan rose sharply due to global oil supply disruptions. The situation was linked to the closure of the Strait of Hormuz. This route is considered vital for global oil and gas transport.
Iran reportedly closed the strait in response to regional attacks involving the United States and Israel. The conflict began on February 28 and ended on April 8 after a Pakistan-mediated ceasefire.
Although the ceasefire remains in place, tensions continue. Both sides are still divided over long-term solutions, especially related to access and control of the Strait of Hormuz.
Wider Government Cost-Cutting Measures
The austerity plan applies across all federal institutions in Pakistan. This includes ministries, departments, state-owned enterprises, and the judiciary.
Government offices are operating on a reduced four-day workweek. However, essential services and banking operations are exempt from this rule.
Authorities have also ordered a 20% reduction in non-essential spending. This applies to both federal and provincial departments during the final quarter of the fiscal year.
Travel and Work Restrictions
The plan also bans non-essential foreign visits by officials. Only mandatory trips are allowed under strict approval.
Up to 50% of government staff are working from home on alternate days. Officials are also required to use economy-class travel for official trips.
Meetings have largely shifted from physical to virtual formats. This move aims to further reduce government expenses in Pakistan.
In other news read more about Pakistan Plans Major Tariff Cuts at Gwadar Port to Boost Trade
Overall, the extended austerity measures reflect efforts to manage economic pressure and external challenges while maintaining essential government functions.
