In a televised address on Monday, Prime Minister Shehbaz Sharif announced a series of austerity measures aimed at conserving fuel in response to the global energy crisis triggered by the ongoing US-Israel war on Iran. The government has introduced a combination of cost-cutting policies and operational restrictions affecting both public sector institutions and citizens.
Under the new directives, the fuel allowance for official vehicles will be cut by 50 percent for two months, though ambulances and public buses are exempt. Additionally, 60 percent of vehicles in federal and provincial government departments will be grounded over the same period. Cabinet members at both federal and provincial levels will forgo their salaries, while parliamentarians will face a 25 percent reduction in pay. BS-20 government officials earning over Rs300,000 will forgo two days’ salary, with health and education sector staff exempted.
Government spending will also be curtailed, with a 20 percent reduction in non-employee expenditures for the fourth quarter. Ministries have been barred from purchasing vehicles, furniture, air conditioners, and other non-essential items until June. Ministers, advisers, and officials are prohibited from undertaking foreign trips unless deemed “essential for the country’s interests,” while teleconferencing and online meetings are to be prioritized to save fuel. Official dinners, Iftar parties, seminars, and conferences will also be restricted, with events hosted at government premises instead of hotels.
To further reduce energy consumption, public sector offices will operate four days a week, with 50 percent of staff working from home where possible. Essential services, including banks, are exempted. Higher educational institutions will switch to online classes from March 16 to 31, while all schools will observe a two-week closure over the same period. The prime minister noted that directives had been issued to all provincial governments to implement these measures.
Addressing the broader geopolitical context, PM Sharif said Pakistan was navigating a “delicate turn” in global affairs. He condemned the US-Israel attacks on Iran, which resulted in the assassination of Supreme Leader Ayatollah Ali Khamenei, as well as Iran’s retaliatory strikes on countries including Saudi Arabia, Qatar, the UAE, Turkey, Oman, Kuwait, Bahrain, and Azerbaijan. Pakistan, he stressed, was actively pursuing diplomatic solutions and working to maintain regional stability.
“The global price of oil has jumped above $100 per barrel, and if this trend continues, it could spiral out of control,” the prime minister said. He reassured citizens that the government was taking steps to limit the economic impact on ordinary Pakistanis, citing previous achievements such as reduced inflation, a stable rupee, and lower electricity prices.
PM Sharif warned hoarders and profiteers of oil against exploiting the crisis, promising strict legal action against any unlawful gains. He emphasised that the burden of austerity should be “borne judiciously by all segments of society,” urging the elite to set an example.
The measures come after public backlash over recent hikes in petrol and diesel prices, which rose by up to Rs55 amid the disruption of Middle East energy exports. Officials said Pakistan has adequate reserves of petrol and diesel and has taken precautionary steps to mitigate potential shortages.