Pakistan's Prime Minister Shehbaz Sharif on Monday announced a sweeping austerity and energy-saving plan, saying the steps were necessary as the country confronts a global fuel crisis triggered by the ongoing conflict involving the United States, Israel and Iran.
Pakistan, like several other economies, is facing fuel supply disruptions following the closure of the Strait of Hormuz, a critical passage for global energy supplies.
The disruption began after Iran retaliated against US bases in the Middle East following joint strikes by the United States and Israel, complicating oil shipments across the region.
Amid tightening supplies, Pakistan increased petrol and diesel prices by 20 per cent and rolled out nationwide austerity measures aimed at cutting fuel consumption and government spending.
Region "In A State Of War"
In a televised address to the nation, Sharif said the wider region had been engulfed in conflict and stressed that Pakistan was working through diplomatic channels to help ease tensions.
"The entire region is currently in a state of war," the PM said, adding that Pakistan was making every effort through diplomatic channels to help resolve the situation.
Sharif also condemned the attacks on Iran that resulted in the killing of Ali Khamenei, while also criticising retaliatory strikes targeting friendly Gulf countries.
Oil Prices Surge
Sharif said global energy markets had already reacted sharply to the conflict.
"The price of crude oil in the international market has suddenly jumped from around $60 to more than $100 per barrel," he said, adding that Pakistan's daily economic activity depended heavily on oil and gas imports from Gulf countries.
He said the government had been forced to take difficult economic and administrative decisions to manage the situation.
"We have taken difficult decisions to reduce the energy crisis and stabilise the economy despite challenging circumstances," he said.
Sharif acknowledged that the recent fuel price increase was a painful decision.
"The increase in petroleum prices was a difficult decision taken with a heavy heart," he said.
"My mind told me that there was no option but to increase fuel prices, while my heart worried that it could place a burden on the poor," he added.
He warned that prices could rise further as the global crisis continues but assured the public that the government would try to limit the burden.
"I assure the nation that we will make every possible effort to ensure that the burden on the public is kept to a minimum," he said.
Government Announces Austerity Measures
Sharif said both federal and provincial governments had agreed to implement austerity and simplicity measures to conserve energy and reduce expenditure.
Under the new plan, fuel allocations for vehicles used by government departments will be cut by half for two months.
"For the next two months, the fuel provided to vehicles of government departments will be reduced by 50%," he said.
The prime minister added that 60 per cent of vehicles across government departments would remain off the roads during the same period.
Members of the federal cabinet, advisers and special assistants will not draw salaries for two months, while members of parliament will face a 25 per cent pay cut.
"All government departments will reduce their expenditures by 20%," he said.
Travel Ban And Work-From-Home Policy
Sharif also announced a ban on foreign travel by ministers, advisers, special assistants and government officials unless the visit is deemed essential.
"Only extremely necessary visits for national interest will be allowed," he said, adding that teleconferencing and online meetings would be prioritised.
The austerity measures also include a deduction of two days' salary from Grade-20 and above officers earning more than 300,000 Pakistani rupees per month.
The government will also impose a complete ban on official dinners and iftar parties, while seminars and official events will be held only at government venues to reduce costs.
Sharif said 50 per cent of staff in both the public and private sectors would work from home, except for essential services.
Government offices will operate four days a week, though the policy will not apply to banks.
Schools across the country will also be closed for two weeks starting at the end of the current week as part of the energy conservation drive.
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