Prime Minister Shehbaz Sharif on Monday unveiled several energy-saving and austerity measures to avoid fuel shortages and said he would not further raise prices of petroleum products, seeking to placate a nervous public while bearing the cost of rising prices. The measures announced by the prime minister in a pre-recorded national television address aim to save fuel and raise funds to partly offset any further increases in diesel and gasoline prices. The remaining deficit is expected to be met from the Finance Ministry’s Rs390 billion contingency fund.
"It will be inevitable to increase the [fuel] prices in the coming days [because of the increase in global prices]but I will do my best to ensure that no further burdens are placed on the people," Shehbaz said while addressing the nation. The speech came after Shehbaz chaired a meeting to finalize energy saving and austerity measures. According to the meeting participants, Shehbaz pointed out that the civil and military leadership decided that there would be no further increase in the prices of petroleum products. The new decision to keep prices unchanged is contrary to an earlier decision in which the Prime Minister approved price adjustments on a weekly basis and passing on the full impact to consumers. Last Friday, the government increased the prices of petrol and diesel by Rs 55 per liter, or 20 per cent, signaling its desire to pre-empt any crisis. However, the increase in petrol prices amounted to Rs 23 per liter, which was more than necessary, and the government ended up earning additional revenue instead of just recouping international oil prices from domestic consumers. To minimize the need for increased fuel imports and contribute to the funds needed to offset price increases, the Prime Minister’s speech unveiled a series of measures for two months. Similar measures were also notified separately by the Khyber-Pakhtunkhwa government. Over the next two months, fuel allocated to vehicles of government departments will be reduced by 50%, while departmental expenditure will be reduced by 20%, the Prime Minister said. He added that 60% of vehicles across all departments will remain off-road during this period. However, similar measures were also announced in the past, but the austerity committee of the Ministry of Finance issued exemption certificates and authorized the purchase of new vehicles, including for ministry officials. Shehbaz said the federal cabinet would not receive salaries for two months, while MPs’ salaries have also been reduced by 25%. Besides, two days’ salary of officers of rank 20 and above and those earning more than Rs 300,000 will be deducted and used for public assistance. In addition, there will be a complete ban on the purchase of vehicles, air conditioners and other items for government offices, as well as foreign visits of the Prime Minister, Chief Ministers, Governors, Federal and Provincial Ministers, Advisors and Special Assistants, except when travel is unavoidable. The prime minister also banned all official dinners and Iftar parties and said seminars would be held at government venues rather than hotels to save money. Shortened working week The Prime Minister said only 50% of staff will work in the public and private sectors, with the exception of essential services. Public offices will only open four days a week, while Friday has been declared an additional public holiday for two months, except for banking, agriculture and industrial sectors. All public and private schools will be given a two-week holiday from next week, and online classes will be introduced in all higher education institutions, he said. He warned hoarders and profiteers against illegal profiteering and urged provinces to take action against them.
"Pakistan needs national unity and solidarity more than ever," said the Prime Minister.
