Pakistan on Thursday rolled out sweeping austerity and fuel-conservation measures as soaring global energy prices and supply disruptions from the widening Gulf conflict intensified pressure on the import-dependent economy. Prime Minister Shehbaz Sharif approved the nationwide drive, which includes a 50 per cent reduction in fuel allocations for official vehicles, a complete ban on purchases of new government vehicles and restrictions on foreign travel by officials. The measures also extend beyond government spending, with markets ordered to close by 9 pm, wedding halls by 10 pm and restaurants and cafés by 11 pm, while marriage functions will be restricted to serving a single dish.
Government takes first hit
Sharif said the government and the country’s elite would bear the initial burden of the austerity drive as Pakistan attempted to reduce fuel consumption and contain non-essential expenditure. Fuel allocations for official vehicles will be halved for three months, although ambulances, fire engines, operational vehicles of security agencies and other essential services have been exempted. Administrative and non-operational vehicles belonging to those organisations will remain subject to the cut. The government also imposed a five per cent monthly reduction in non-employee-related expenditure during the current financial year and prohibited the purchase of durable goods, barring information technology equipment.
Foreign visits by ministers and government officials have been restricted for three months, with economy-class travel mandated in unavoidable cases. Departments have been directed to make greater use of video and teleconferencing, while official dinners have been prohibited except those held for visiting foreign delegations. Government-funded seminars, training programmes and conferences have also been restricted, with departments asked to use government facilities where such events cannot be avoided.
Curbs reach daily life
The conservation drive will also affect businesses and social events. Shops, markets, shopping malls, bazaars and grocery and general stores must close by 9 pm, while marriage halls and other venues hosting celebrations must shut by 10 pm. Restaurants, cafés and food outlets can operate until 11 pm, although takeaway and home-delivery services are exempt. Pharmacies, hospitals, clinics, laboratories, fuel and CNG stations, EV charging facilities, IT companies and call centres are among services excluded from the closing-time restrictions.
The government has also ordered continuation of the single-dish policy for weddings and other marriage-related functions, presenting it as part of the broader effort to curb unnecessary consumption. Islamabad has asked provincial and regional governments to consider adopting similar conservation measures.
Gulf conflict drives crisis
The measures come as disruption at two of the world’s most important energy corridors — the Strait of Hormuz and the Red Sea — pushes up oil and gas costs across Asia. Pakistan has been particularly exposed because of its dependence on imported energy. Petrol has risen to around Pakistani Rs 380 a litre and diesel to about Rs 409, adding to inflationary pressure on households and businesses.
The government has simultaneously introduced a fuel-relief programme for motorcycles, rickshaws and cars with engines of up to 800cc, providing eligible users a subsidy of Pakistani Rs 100 per litre within prescribed monthly limits. The latest austerity package marks the second major conservation push this year after Pakistan imposed similar measures in March, when schools were temporarily shut, government fuel consumption was reduced and greater use of work-from-home arrangements was encouraged as the regional conflict disrupted energy supplies.