Pakistan’s federal government has ordered a new round of fuel-conservation and austerity measures as higher international petroleum prices add pressure to the country’s economy.
According to a Cabinet Division notification reported by state broadcaster Radio Pakistan on September 17, fuel provided to official vehicles will be reduced by 50% for three months. Operational vehicles used by the armed forces, civil armed forces, law-enforcement agencies, essential services and the Federal Board of Revenue are exempt, while administrative and non-operational vehicles are covered by the cut.
The government also ordered a 5% reduction in the Non-ERE budget for the current fiscal year, to be applied through monthly deductions. Foreign missions are included, although expenditure on rents, education fees and medical arrangements will continue.
Spending and travel restrictions
The package bans purchases of government vehicles and durable goods, with an exception for IT-related procurement. Foreign visits and travel are restricted for three months, subject to specified exemptions, while unavoidable official travel is to be in economy class.
Government meetings are to be held by teleconference where possible. Official dinners are prohibited except for visiting foreign delegations, and government-funded seminars, training sessions and conferences are restricted.
Prime Minister Shehbaz Sharif approved the nationwide austerity and fuel-conservation campaign against the backdrop of higher global oil prices linked to Middle East tensions. The government said a monitoring committee would collect implementation reports and submit weekly progress reports to the prime minister.
Market timings continue
The package continues, rather than newly introduces, existing market closing times. Shops, markets, shopping malls and general stores are to close by 9 p.m.; marriage halls and other festive venues by 10 p.m.; and restaurants, cafés and food outlets by 11 p.m.
A range of services, including pharmacies, hospitals, fuel stations, EV charging stations, IT companies and call centres, are exempt from the closing-time restrictions.
The government has also asked provincial and regional governments to consider similar conservation and austerity measures.
Sources
- Federal Govt announces fuel conservation, austerity measures
- PM approves nationwide austerity campaign