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Fuel Austerity Plan Announced by Pakistan Govt

Traffic and motorcycles lined up near petrol station in Pakistan after government announces fuel austerity plan

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The government of Pakistan has introduced a wide ranging fuel austerity plan to reduce fuel consumption and control economic pressure caused by the ongoing Middle East conflict. Prime Minister Shehbaz Sharif announced the measures while addressing the nation, explaining that the rising global oil prices and supply disruptions have forced the government to adopt urgent conservation strategies.

The announcement came shortly after the government increased the prices of petrol and diesel by nearly 20 percent, a move linked to disruptions in global oil markets triggered by the conflict in the region. According to the prime minister, Pakistan is also pursuing diplomatic efforts to help reduce tensions in the Middle East.

Under the new fuel austerity plan, several strict measures will be implemented across federal government institutions, including ministries, state owned enterprises, the judiciary, the legislature and defence departments. Provincial governments have also been encouraged to adopt similar steps.

One of the most notable decisions is the 50 percent reduction in fuel allocation for official vehicles for the next two months. Additionally, 60 percent of government vehicles will remain off the roads, significantly cutting down fuel usage. To demonstrate solidarity during the economic challenge, federal ministers, advisers and special assistants have agreed to give up their salaries and allowances for two months.

Members of the federal and provincial legislatures will also take a 25 percent voluntary salary reduction, while senior government officers earning more than Rs300,000 per month will contribute two days of salary. At the same time, government departments must cut non essential expenditures by 20 percent during the final quarter of the fiscal year.

The government has also extended the ban on purchasing new official vehicles until June 2026 and prohibited buying durable goods for government offices, except limited IT equipment. Official foreign trips have been restricted, and all necessary travel must be conducted in economy class.

Additional steps include four day workweeks in government offices, expanded work from home arrangements, and replacing physical meetings with virtual meetings to save travel costs.

Schools across the country will observe two weeks of spring holidays, while colleges and universities will shift to online classes. These measures aim to ease fuel demand and help Pakistan manage the economic challenges created by the global energy crisis.

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