Pakistan Orders Austerity as Fuel Prices Surge
Pakistan has introduced a fresh three-month austerity and fuel-conservation programme as rising international oil prices increase pressure on the country’s economy. Prime Minister Shehbaz Sharif said government institutions and wealthier sections should bear the initial burden as Islamabad seeks to reduce fuel consumption and public expenditure.
Pakistan Cuts Fuel for Government Vehicles
Fuel allocations for official government vehicles will be reduced by 50% for three months. Operational vehicles belonging to the armed forces, law-enforcement agencies and essential services are exempt, while administrative and non-operational vehicles remain covered by the restrictions.
The government has also ordered a 5% reduction in non-employee-related expenditure and prohibited purchases of new government vehicles and most durable goods, except IT-related equipment.
Markets to Close Early Under Fuel-Saving Plan
Shops, markets and shopping malls will close by 9 pm, while marriage halls must shut by 10 pm and restaurants and cafés by 11 pm.
Pharmacies, hospitals, laboratories, fuel stations, bakeries, dairy shops, gyms, IT companies and several essential services are exempt from the timing restrictions.
Wedding functions will also be limited to serving a single dish as part of the wider austerity drive.
Foreign Travel and Official Dinners Restricted
Official foreign travel has been banned for three months, subject to limited exemptions. Unavoidable government travel must generally be undertaken in economy class.
Official dinners, government-funded seminars and unnecessary conferences have also been restricted, while departments have been encouraged to use video conferencing.
Pakistan has separately introduced a fuel subsidy of PKR 100 per litre for eligible motorcycles, rickshaws and cars up to 800cc to cushion vulnerable households from higher energy costs.
