The Media Line: Pakistan Announces 2-Month Austerity Plan as Energy Crisis Looms 

Pakistan Announces 2-Month Austerity Plan as Energy Crisis Looms  

By Arshad Mehmood/The Media Line  

As Middle East tensions escalate and fuel prices rise, Pakistan announces two-month national austerity and energy-saving measures, including school closures and work-from-home arrangements.  

In light of the tense situation in the Middle East and the possibility of an energy crisis, Pakistan’s prime minister, Shehbaz Sharif, announced a nationwide policy in effect immediately, declaring three weekly holidays for government and private offices, a work-from-home arrangement for 50% of employees, and two weeks of school closures.  

Addressing the nation on state television on Monday night, Sharif said he was speaking to the public about the serious and dangerous situation facing the region, noting that Iran and much of the Middle East are engulfed in intense conflict.  

Prime Minister Sharif announced a two-month nationwide policy focused on energy conservation, austerity, and public relief.  

Government vehicle fuel quotas will be cut by 50%, with 60% of vehicles temporarily grounded, while ambulances and public buses are exempt.  

Cabinet members, ministers, advisers, and special assistants will forgo salaries, lawmakers will face a 25% pay cut, and non-salary expenditures across departments will be reduced by 20%. Purchases of vehicles, furniture, and air conditioners are banned.  

Foreign visits by federal ministers, advisers, senior officials, and provincial governors are restricted, with essential trips allowed.  

Online meetings are encouraged; 50% of staff will work from home, except for essential services; and offices will operate four days a week, with an extra weekly holiday. Banks, industry, and agriculture are exempt from these measures.  

Schools will be closed for two weeks, and higher education institutions will shift to online classes.  

The prime minister said the government and people of Pakistan have expressed deep sorrow over the killing of Iranian Supreme Leader Ali Khamenei, members of his family, and other Iranians in Israeli attacks, adding that Pakistan strongly condemns the strikes on Iran. However, he refrained from mentioning the United States by name.  

He said Pakistan also condemns the attacks on Muslim countries, including Saudi Arabia, Qatar, Kuwait, Bahrain, the United Arab Emirates, Turkey, and Azerbaijan, noting that the loss of human lives there is both tragic and deeply concerning.  

The prime minister, however, did not mention that the attacks on these countries were being carried out by Iran.  

Sharif said Pakistan is making efforts to resolve the situation through diplomatic means.  

He noted that in the current global environment, a crisis originating in one country quickly spreads to others. If the situation deteriorates further, he warned, prices could spiral out of control.  

Pakistan’s economy, agriculture, industries, transport, and everyday life depend heavily on oil and gas supplies coming from the Gulf region, Sharif noted. In such circumstances, the government has taken difficult and important decisions, which, he acknowledged, were by no means easy.  

Sharif also warned against hoarding or profiteering in petrol and diesel, stating that strict legal action will be taken without discrimination.  

The Pakistani population is now directly feeling the sting of higher fuel prices, a consequence of the Middle East conflict and the government’s unexpected price hike on March 7.  

The increase in oil prices pushes up the cost of food items and other daily necessities. Already struggling with inflation, the public is likely to face even greater difficulties.