Pakistan extends emergency austerity measures amid global oil crisis
What's the story
Pakistan's Prime Minister Shehbaz Sharif has extended the country's emergency austerity measures until June 13, 2026, news site Dawn reported. The decision comes amid a global oil crisis triggered by the conflict in West Asia that broke out between Iran on one hand and the US and Israel on the other. The measures, which were first introduced on March 9, include a 50% reduction in fuel allowances for official vehicles and keeping 60% of such vehicles off the road.
Official cuts
Ban on foreign travel for ministers, government officials
The government first rolled out strict austerity measures on March 9. The measures also include a ban on foreign travel by ministers and government officials, except for visits deemed essential to national interests. Government departments have been directed to cut expenses by 20%, and a ban has been imposed on the purchase of vehicles, furniture, air conditioners, and other equipment.
Salary reductions
Salary cuts for state-owned enterprises, government-controlled institutions
The austerity measures also include a four-day workweek for government employees and salary cuts of 5-30% for state-owned enterprises and government-controlled institutions. A proposed 25% salary cut for parliamentarians is also part of these measures. The extension of these austerity measures was approved on recommendations from the committee overseeing fuel conservation and implementation.
Subsidy extension
Earlier directives on fuel conservation, austerity measures remain in force
The notification stated that all previously announced austerity and fuel-saving measures would remain in force for the periods specified in earlier directives. Those without a defined end date would remain effective until further notice. On April 30, Sharif approved a one-month extension of fuel subsidies for motorcyclists, public, and goods transport operators as part of targeted relief initiatives due to rising global oil prices.
Indian response
Indian PM calls for adoption of similar measures
Meanwhile, Indian Prime Minister Narendra Modi has also called on citizens to adopt austerity measures in light of the global crisis. He urged people to reduce imports and foreign exchange outflow by avoiding overseas travel, postponing gold purchases, preferring local products, and domestic tourism. Modi emphasized that "living for the nation and performing one's duties is also patriotism," urging responsible fuel usage during this time.