Prime Minister Shehbaz Sharif announced the extension of Pakistan’s nationwide austerity drive until June 13, aiming to mitigate the impact of a global oil crisis triggered by the US-Israeli attacks on Iran, which began on February 28.
A Cabinet Division notification, obtained by Dawn, stated: “The prime minister, on consideration of the recommendations of the committee for monitoring and implementation of fuel conservation and additional austerity measures, has been pleased to extend the applicability of the following additional austerity measures up till 13th June, 2026 with immediate effect.”
The extended measures include a 50 percent reduction in fuel allowance for official vehicles, with exceptions for operational units such as ambulances and public buses. In addition, 60 percent of official vehicles are to remain grounded, and all foreign visits by ministers and government officials are banned, except for trips deemed essential to national interests.
The notification added: “Other additional austerity and fuel conservation measures, as notified from time to time, shall continue to remain in force over the periods specified in the respective notifications. Measures for which no period or end date has been specified shall remain applicable till further orders.”
Previously announced austerity steps include a four-day workweek for government offices. However, the additional holiday does not apply to banks, the agriculture and industrial sectors, or essential services such as hospitals and ambulances.
Salary reductions are also part of the austerity plan, with parliamentarians seeing a 25 percent cut, while employees of state-owned enterprises and government-supervised institutions face reductions ranging from 5 percent to 30 percent. Government departments have been ordered to slash expenditures by 20 percent and refrain from purchasing vehicles, furniture, air conditioners, and other non-essential items.
PM Shehbaz has tasked the Intelligence Bureau (IB) with conducting a third-party audit to ensure the proper implementation of the austerity measures.
Earlier, on April 30, the prime minister extended fuel subsidies for motorcyclists, as well as public and goods transport, for one month. These subsidies are part of targeted relief measures aimed at supporting bikers, farmers, and transporters amid the surge in global oil prices linked to the ongoing US-Israel conflict with Iran.
By Vafa Guliyeva
