ISLAMABAD: Prime Minister Shehbaz Sharif on Monday announced a sweeping austerity and energy-saving plan, saying the measures were necessary to deal with the global fuel crisis triggered by the ongoing US–Israel–Iran conflict 2026.
Addressing the nation, the prime minister said the entire region was facing instability and Pakistan was pursuing diplomatic efforts to help defuse the crisis.
“The entire region is currently in a state of war, and Pakistan is making every possible effort through diplomatic channels to help resolve the situation,” he said.
The government’s announcement comes as global fuel supply routes have been disrupted following the closure of the Strait of Hormuz, a key passage for international oil shipments.
According to the premier, crude oil prices in the international market have surged sharply from around $60 to over $100 per barrel, increasing economic pressure on fuel-importing countries including Pakistan.
The government recently increased petrol and diesel prices by around 20%, a decision the prime minister described as “difficult but unavoidable”.
“My mind told me there was no option but to increase fuel prices, while my heart worried about the burden on the poor,” he said, adding that prices could rise further if the global crisis continues.
The prime minister also highlighted Pakistan’s security challenges, saying the country was simultaneously confronting terrorism along its western borders while the armed forces were responding effectively under the leadership of Asim Munir.
He also condemned attacks on Iran that resulted in the assassination of Ali Khamenei, while also criticising retaliatory attacks on friendly Gulf countries.
Austerity and energy-saving measures
As part of the nationwide austerity drive, the government announced several steps to conserve fuel and reduce public spending.
Fuel allocations for vehicles used by government departments will be reduced by 50% for the next two months, while 60% of official vehicles will remain off the roads during the same period.
Members of the federal cabinet, advisers and special assistants will not draw salaries for two months, while members of parliament will face a 25% salary cut.
All government departments have been directed to reduce their expenditures by 20%.
The prime minister also announced a ban on foreign visits by ministers, advisers and officials, except for essential trips undertaken in the national interest. Teleconferencing and virtual meetings will be prioritised instead.
Additional measures include a two-day salary deduction from Grade-20 and above government officers earning more than Rs300,000 per month.
The government has also imposed a ban on official dinners and iftar parties, while seminars and official events will only be held at government venues to cut costs.
Furthermore, 50% of staff in both public and private sectors will work from home, except for essential services.
Government offices will operate four days a week, though the policy will not apply to banks.
The prime minister also announced that all schools would remain closed for two weeks starting at the end of the current week, while universities and higher educational institutions would shift to online classes.
He also warned traders against hoarding essential commodities during the crisis.
“I want to warn hoarders not to take unfair advantage of the current situation,” he said.
Concluding his address, Shehbaz Sharif urged national unity in the face of global challenges.
“Our nation needs unity and a strong sense of responsibility to overcome this crisis,” he said.