US-Iran War: Pakistani Prime Minister Shehbaz Sharif on Monday announced a series of austerity measures aimed at saving fuel in the country as oil prices rise due to the US-Israeli war against Iran, AFP news agency reported.
Sharif – who addressed the nation on state-run PTV and other private channels – described the decision as “difficult” and said he would like to avoid another increase that would hit the population, many of whom live in poverty.
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Pakistan’s prime minister said he was speaking to the nation amid the threat of war across the region. The energy crisis is a new crisis,” Sharif said.
Shehbaz said the government has decided to reduce the fuel ration for government vehicles by 50 percent for the next two months, while 60 percent of government vehicles will stop working during this period. “The government has decided that 50 percent of public and private sector employees will work from home to save fuel,” the prime minister said.
“In addition, they will only work four days a week,” he said.
The prime minister said at a meeting on Monday that his cabinet ministers had agreed to try to prevent the situation from worsening and that government offices, except banks, would switch to a four-day work week, with half of all employees ordered to work from home, according to news agency reports.
The school holidays were extended and lessons moved online after two weeks.
Fuel allowances for official vehicles other than ambulances have been reduced by 50 percent for the next two months. The meeting also agreed to cut the salaries of government employees, ban the purchase of new equipment and limit foreign official travel, apart from what is “necessary for the betterment of the country”, Sharif said.
Online meetings will be a priority, he said.
Why the measures?
The ongoing war in West Asia affected other countries in South Asia. On Sunday, Bangladesh, which imports 95 percent of its oil and gas, began fuel rationing, causing long lines at gas stations and boosting security amid the unrest.
Light displays for independence and Ramadan celebrations have also been canceled, officials said Monday.
Oil prices jumped above $100 a barrel for the first time since Russia’s full-scale invasion of Ukraine in 2022, when Iran launched retaliatory strikes on oil-producing Gulf states.
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Pakistan is dependent on oil and gas from the Persian Gulf and raised gas station prices by about 20 percent last Friday, prompting long queues at gas stations across the country.
What other measures did Sharif announce?
Sharif said Pakistan’s economy depends on oil imports from the Persian Gulf and the country is facing problems due to rising oil prices.
The development comes as the US-Israeli war with Iran continues, disrupting supply chains as shipping through the Strait of Hormuz remains paralyzed.
The Strait of Hormuz, a narrow waterway, connects the Persian Gulf with the Gulf of Oman, through which about a fifth of the world’s oil passes.
The strait was effectively closed after several attacks on ships by Iran in retaliation for joint US-Israeli attacks.
All ministers and cabinet advisers will not receive their salaries for two months, and the salaries of all members of parliament will be cut by 25 percent during this period, Sharif announced. All Government Servants of Grade 20 and above drawing pay above ₹300,000 per month, will give up two days’ salary at once.
The expenditure of all ministries will be reduced by 20 percent and the purchase of cars, air conditioners and other luxury items will be banned.
Ministers banned official foreign travel
Pakistan also banned all official foreign travel by ministers, advisers and officers. However, essential foreign travel will be exempted. He also announced the introduction of mandatory teleconferencing and online meetings to reduce travel-related fuel costs. A ban was also imposed on all state dinners and iftars.
The country also banned government seminars from being held in hotels, instead ordering such events to be held in public buildings.
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The prime minister also warned petrol station owners that they will crack down strictly on hoarding and any other illegal practices. He also called on the elite and the wealthy to come forward and play a role in the success of the government’s austerity measures.
The prime minister also spoke about the unpopular decision to raise oil prices after the Iran war, describing it as the most difficult. However, he promised not to burden the masses with further increases in oil prices.
The energy crisis is a new crisis.
“I will try to keep the prices from increasing,” he said.
(With AFP and PTI inputs)
