Pakistan is implementing strict austerity measures, including fuel cuts and travel bans, to combat the fallout of the global oil crisis due to the West Asia conflict.
The Pakistan government has decided to extend its austerity measures, which began in March, till June 13. Pakistan’s Prime Minister Shehbaz Sharif announced the extension of the nationwide austerity measures to tackle the economic fallout of the global oil crisis triggered by the West Asia conflict, reported Pakistani news website Dawn.
Earlier, on May 10, Prime Minister Narendra Modi urged people in India to undertake certain austerity measures to deal with the global crisis, whose effect is likely to be felt in India as well.
The crisis emerged after the US-Israeli attacks on Iran on February 28, prompting a sharp surge in international oil prices. In response, the government had rolled out strict austerity steps on March 9.
According to a Cabinet Division notification, the Pakistan PM approved the extension following recommendations from the committee overseeing fuel conservation and austerity implementation. The notification stated that the additional measures would remain in effect immediately through June 13, 2026.
What do Pakistan’s austerity measures include?
Among the key measures extended in Pakistan is a 50 per cent cut in fuel allowances for official vehicles, with operational transport such as ambulances and public buses exempted.
The government also continued the directive to keep 60% of official vehicles off the road, along with maintaining a ban on foreign travel by ministers and government officials, except for visits considered essential to national interests.
The notification further said all previously announced austerity and fuel-saving measures would stay in force for the periods specified in earlier directives, while those without a defined end date would remain effective until further notice.
Earlier measures included reducing the government workweek to four days, from Monday to Thursday. Banks, however, were exempt from the additional weekly holiday, as were the agriculture and industrial sectors, along with essential services including hospitals and ambulance operations.
The austerity package also proposed a 25 per cent salary reduction for parliamentarians, while employees of state-owned enterprises and government-controlled institutions were subjected to salary cuts ranging from 5 to 30 per cent.
Government departments were directed to slash expenses by 20 per cent, alongside a ban on the purchase of vehicles, furniture, air conditioners and other equipment.
To ensure compliance, PM Shehbaz had assigned the Intelligence Bureau to conduct an independent audit of the implementation of these measures.
Meanwhile, on April 30, the prime minister approved a one-month extension of fuel subsidies for motorcyclists as well as public and goods transport operators.
The subsidies are part of targeted relief initiatives introduced for bikers, farmers and transporters to ease the burden of rising global oil prices following the US-Israel conflict with Iran.
PM Modi calls on people to undertake austerity measures
PM Modi on Sunday called on citizens to implement a series of aimed at reducing imports and foreign exchange outflow. These measures included avoiding overseas travel and destination weddings, postponing gold purchases, preference for local products, domestic tourism, and use of metros and electric vehicles.
He said dying for the country is not the only measure of patriotism. “Living for the nation and performing one’s duties is also patriotism. Thus, in this time of global crisis, we must ensure that we perform certain duties. These include. Using fuel with restraint; we should use less fuel. Use metro trains wherever possible. If you need to travel by cars, try to carpool. Use railways to send goods and parcels. Those using electric vehicles should maximise their use.”
