New Delhi: As part of its bid to conserve energy, Pakistan has announced a new set of austerity measures, including cuts to fuel allocations for official vehicles, besides bans on the purchase of vehicles for government use, foreign travel by officials and official dinners.
“Reduction of fuel provision by 50 percent for official vehicles for three months, 5 percent reduction in the Non-Employee Related Expenditure Budget for the whole FY 2026-27, a complete ban on purchase of all durables except IT procurements and complete ban on foreign visits and travel for three months, even in the case of obligatory visits, except in the case of scholarships,” read an official statement by the Pakistan PMO.
The second set of such restrictions introduced this year also prohibit the government from purchasing durable goods, with the exception of information-technology equipment.
Officials have been instructed to rely on teleconferencing for meetings where possible, part of a broader effort to reduce fuel consumption and government spending.
The government has also directed that only one dish be served at all wedding-related functions and events across the country.
Islamabad had introduced similar austerity measures in March, when the government temporarily closed schools for two weeks, cut fuel consumption across government departments, and encouraged work-from-home in an effort to conserve fuel.
The latest measures come as Pakistan faces gas and electricity shortages. Disruptions to liquefied natural gas (LNG) supplies caused by the wider conflict in West Asia have added pressure to the country’s energy system while pushing up the cost of petrol and diesel.
Petrol prices in Pakistan rose by 4.10 PKR per litre Tuesday, while the price of high-speed diesel was hiked by 6.41 PKR, pushing the price of petrol to 384.34 PKR per litre and diesel to 415.83 PKR per litre.
Climate Change Minister Musadik Malik said the government was seeking to cushion consumers from part of the increase through its fuel relief scheme. A new policy, which came into effect Wednesday, provided owners of motorcycles, rickshaws and small cars with a subsidy of 100 PKR, or about $36 cents per litre, subject to a capped monthly quota.
Against the backdrop of disruption in the Strait of Hormuz as a result of the conflict between US-Israel and Iran, fighting between Saudi Arabia and the Iran-backed Houthis in Yemen has sparked fears of disruption in the Red Sea, which could add more pressure on regional energy markets.
For Pakistan, which depends heavily on imported energy, the disruptions have created a difficult combination of higher fuel costs and growing concerns about the availability of gas and electricity. The government’s latest austerity measures are intended to reduce consumption as the country navigates those pressures.
(Edited by Amrtansh Arora)
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