Fuel Cuts, Travel Restrictions and Salary Reductions to Continue Nationwide
Islamabad — Prime Minister Shehbaz Sharif has extended the government’s nationwide austerity campaign and fuel conservation measures until June 13 as Pakistan continues to face economic pressure caused by Middle East tensions and rising global oil prices.
According to a notification issued by the Cabinet Division, the extension was approved after recommendations from the committee overseeing fuel conservation and austerity implementation. The measures were initially introduced on March 9 following the US-Israeli strikes on Iran, which disrupted global oil supplies and pushed fuel prices higher worldwide.
Fuel Allowances and Government Vehicle Restrictions Continue
Under the extended austerity plan:
- Fuel allowances for official government vehicles will remain reduced by 50%.
- Around 60% of government vehicles will continue to stay off the roads.
- Operational vehicles, including ambulances and public transport buses, remain exempt from the restrictions.
The government has also continued its ban on foreign visits by ministers and officials unless trips are considered essential for national interests.
Earlier measures, including the four-day working week for government offices from Monday to Thursday, will also remain in place.
Salary Cuts and Spending Reductions
The austerity package includes:
- A 25% salary reduction for parliamentarians.
- Salary cuts ranging from 5% to 30% for employees of state-owned enterprises and government-supervised institutions.
- A 20% reduction in non-essential government expenditures.
Additionally, up to 50% of government employees are allowed to work from home on alternate days, excluding essential service departments.
Officials have also been instructed to travel in economy class and prioritize virtual meetings instead of physical gatherings to reduce operational costs.
Intelligence Bureau Assigned Monitoring Role
Prime Minister Shehbaz Sharif has directed the Intelligence Bureau to conduct a third-party audit to ensure departments comply with austerity measures.
At the same time, the government has extended targeted relief measures, including fuel subsidies for motorcyclists, farmers, and transporters, to reduce the impact of increasing petroleum prices on lower-income groups.
President Zardari Calls for Inflation Relief
President Asif Ali Zardari urged authorities to take all possible steps to reduce inflationary pressure on citizens during a meeting at Aiwan-e-Sadr with Prime Minister Shehbaz Sharif and senior government officials.
The meeting included:
- Ishaq Dar
- Ayaz Sadiq
- Mohsin Naqvi
- Azam Nazeer Tarar
The presidency stated that the president directed officials to ensure the availability of essential goods and maximize relief for ordinary citizens despite regional instability and supply chain disruptions linked to Middle East tensions.
Fuel Price Hikes Trigger Economic Concerns
The latest directives come after the government increased petrol and high-speed diesel prices by Rs15 earlier this month due to fluctuations in international oil markets and disruptions caused by the closure of the Strait of Hormuz.
The fuel hikes have sparked fresh economic concerns across Pakistan, with transporters increasing fares, businesses warning about higher operational costs, and citizens preparing for another wave of inflation in an already struggling economy.
