Prime Minister Shehbaz Sharif on Monday unveiled several austerity and energy conservation measures to prevent fuel shortages and declared he would not raise prices of petroleum products further, seeking to pacify a nervous public while shouldering the cost of rising prices. The measures announced by the Prime Minister in a nationally televised, pre-recorded speech are aimed at saving fuel and raising funds to partially offset any further increases in diesel and petrol prices. The remaining shortfall is expected to be met from the Finance Ministry’s Rs 390 billion contingency fund.
"It will be inevitable to increase the [fuel] prices in the next few days [because of the increase in global prices]but I will do everything possible so that no more burden is imposed on the people," Shehbaz said while addressing the nation. The speech came after Shehbaz chaired a meeting to finalize austerity and energy conservation measures. According to participants in the meeting, Shehbaz stressed that the civil and military leaders had decided that there would be no further increases in the prices of petroleum products. The new decision to keep prices unchanged is contrary to a previous decision in which the Prime Minister had approved price adjustments on a weekly basis and pass the full impact on to consumers. Last Friday, the government increased petrol and diesel prices by Rs 55 per litre, or 20%, signaling its willingness to pre-empt any crisis. However, the increase in petrol prices was Rs 23 per liter, more than necessary, and the government ended up earning additional revenue instead of simply recovering international oil prices from domestic consumers. To minimize the need for increased fuel imports and contribute to the funds needed to offset price increases, the Prime Minister’s speech revealed a series of measures for two months. Similar measures have also been separately notified by the Khyber-Pakhtunkhwa government. Over the next two months, fuel allocated to government department vehicles will be reduced by 50%, while departmental expenditure will be reduced by 20%, the prime minister said. He added that 60% of vehicles in all departments will remain off the road during this period. However, similar measures were also announced in the past, but the Finance Ministry’s austerity committee used to issue exemption certificates and allow the purchase of new vehicles, even for ministry officials. Shehbaz said the federal cabinet would not draw salaries for two months, while the salary of members of parliament was also reduced by 25%. In addition, two days’ salary will be deducted from officers of grade 20 and above and those earning more than Rs 300,000, which will be used for public assistance. In addition, there will be a complete ban on the purchase of vehicles, air conditioners and other items for government offices, as well as foreign visits by the prime minister, senior ministers, governors, federal and provincial ministers, advisers and special assistants, except when travel is unavoidable. The prime minister also banned all official dinners and Iftar parties and declared that seminars will be held in government venues instead of hotels to save money. Shortened work week The Prime Minister said only 50% of staff will work in the public and private sectors, except in essential services. Public offices will open only four days a week, while Friday has been declared an additional holiday for two months, except for the banking, agricultural and industrial sectors. All public and private schools will have two weeks of vacation starting next week and online classes will be introduced in all higher education institutions, he said. He warned hoarders and speculators against illegal speculation and urged provinces to take action against them.
"Pakistan needs national unity and solidarity today more than ever," said the prime minister.
