Prime Minister Shehbaz Sharif visits President Asif Ali Zardari at Aiwan-e-Sadr. PHOTO: PID
ISLAMABAD:
Prime Minister Shehbaz Sharif on Monday extended the country’s austerity drive and fuel-saving measures until June 13, as the government continues to deal with economic pressure caused by the Middle East conflict and rising global oil prices.
According to a Cabinet Division notification, the extension was approved following the recommendations of the committee monitoring fuel conservation and implementation of austerity measures, which were first introduced on March 9 after US-Israeli strikes on Iran led to disruptions in global oil supplies.
Under the expanded plan, fuel allocations for official vehicles will remain reduced by 50%, while 60% of government vehicles will remain off the roads. Operational vehicles, including ambulances and public buses, are exempt from the restrictions.
The government also maintained a ban on foreign visits by ministers and officials, except for trips considered essential to national interests. Previous measures, including a four-day work week for government offices, Monday to Thursday, will continue.
The austerity plan also includes a 25% pay cut for parliamentarians, while employees of state-owned enterprises and government-supervised institutions will face reductions ranging from 5% to 30%. Government departments have also been ordered to cut non-essential spending by 20%.
Up to 50% of government employees are also allowed to work from home every other day, except in essential services, while civil servants have been instructed to travel economy class and prefer virtual meetings to physical ones to cut costs.
The Prime Minister tasked the Intelligence Bureau with carrying out a third-party audit to ensure compliance with the measures. Meanwhile, targeted aid measures, including fuel subsidies for motorcyclists, farmers and transporters, have also been extended to cushion the impact of rising fuel prices.
President calls for action
President Asif Ali Zardari ordered the use of all possible measures to reduce the impact of inflation on the people during a meeting with Prime Minister Shehbaz Sharif.
A statement from the presidency said the two held a meeting at Aiwan-e-Sadr with Deputy Prime Minister and Foreign Minister Ishaq Dar, National Assembly Speaker Ayaz Sadiq, Interior Minister Mohsin Naqvi, Law Minister Azam Nazeer Tarar and others also present.
“The President ordered possible measures to reduce inflationary pressures, ensure availability of essential goods and provide relief to the common man,” the statement said.
The president said that despite the difficult geographical and regional situation, tensions in the Middle East and supply chain disruption, maximum relief must be provided to the people.
The statement said that the general situation in the country, issues related to Afghanistan and developments in the region were also discussed during the meeting.
The meeting participants further paid tribute to the martyrs of last May’s conflict against India and the professional capabilities of the armed forces, while reiterating “their unwavering commitment to national defense.”
The directives follow the government’s increase on Friday in prices of petrol and high-speed diesel (HSD) by Rs 15 amid fluctuation in global oil prices due to the closure of the Strait of Hormuz. This is the second increase in fuel prices in May.
The sharp rise in oil prices has triggered a new wave of economic anxiety across Pakistan, with carriers raising rates, businesses warning of rising operating costs and ordinary citizens bracing for another inflationary shock in an economy already under severe strain.
(WITH NEWS DESK ENTRY)
