Government announces austerity measures and declares Friday an additional weekly holiday

Faced with rising fuel costs, federal and provincial governments have introduced a series of austerity measures – from declaring an extra weekly holiday to cutting free gas for ministers, limiting protocol vehicles and proposing subsidized fuel for students – even as global oil prices show signs of easing after recent market volatility.

Prime Minister Shehbaz Sharif today chaired a high-level meeting in Islamabad to review the implementation of measures designed to conserve energy and curb government spending in light of changing global economic conditions.

After the meeting, officials announced that Friday would be observed as an additional weekly holiday to help reduce fuel use and electricity demand.

Read also: OGRA dismisses reports of Rs 73 hike on petrol and Rs 84 on diesel as ‘completely baseless’

Addressing the participants, Prime Minister Shehbaz said the government was making all-out efforts to maintain economic stability despite the difficult international circumstances.

To oversee the implementation, the government formed a special committee headed by Deputy Prime Minister and Foreign Minister Ishaq Dar to monitor progress on a daily basis and report directly to the prime minister.

The prime minister also ordered that the impact of austerity measures be assessed through a third-party audit to ensure transparency and assess their effectiveness. All ministries and divisions were instructed to implement policies that promote simplicity, cost reduction and energy conservation.

To ensure proper implementation of the austerity campaign, government departments must submit photographic evidence of vehicles removed from official use. Ministries were also asked to provide reports to the Prime Minister’s Office outlining how work-from-home arrangements were being implemented.

Officials said at the meeting that federal ministries and divisions would submit daily and weekly reports on energy conservation and workforce management efforts to the oversight committee.

Separately, Foreign Minister Dar chaired a meeting with senior officials of the Ministry of External Affairs to review the implementation of the austerity measures announced by the prime minister.

According to officials, the meeting evaluated measures taken by the ministry to align its administrative and operational practices with the government’s broader efforts aimed at ensuring fiscal discipline and reducing public spending.

During the meeting, the deputy prime minister highlighted the importance of prudent use of public resources and directed officials to ensure that the ministry’s activities remain consistent with the government’s commitment to economic responsibility.

He emphasized the adoption of efficient administrative practices and called for limiting expenditures to essential commitments. Officials were directed to identify areas where operational costs could be optimized without affecting Pakistan’s diplomatic reach and delivery of consular services.

Foreign Minister Dar said the Foreign Ministry must continue to carry out its diplomatic functions effectively while contributing to the government’s broader austerity campaign.

Reaffirming his full support for the government’s initiative, the deputy prime minister underlined the ministry’s commitment to responsible governance, transparency and efficient utilization of public funds.

Punjab introduces measures to curb fuel consumption

Meanwhile, the Punjab government also introduced parallel measures to reduce fuel consumption within the provincial administration.

Chief Minister Maryam Nawaz ordered suspension of fuel supply provided by the government to provincial ministers until the oil supply situation was stabilised. Fuel subsidies for official vehicles used by senior government officials were also reduced by 50%.

Protocol convoys accompanying ministers and senior officials were also restricted. Only one vehicle would be permitted for essential safety reasons.

Read: Sindh announces closure of schools from March 16 to 31 and government staff to work from home on Fridays

Punjab also expanded remote working in government offices, allowing only essential staff to report to workplaces while others would perform tasks from home. Officials said public services would continue through digital platforms, including the province’s “Maryam Ki Dastak” initiative.

In addition, authorities reduced official outdoor events and postponed several public gatherings.

The provincial administration also ordered the creation of District Petroleum Monitoring Committees to monitor fuel availability and prevent illegal hoarding or distribution. The Punjab Information Technology Board was tasked with developing a digital track and trace system to monitor oil supplies across the province.

Rising fuel costs also prompted proposals aimed at easing the burden on students.

Former Punjab transport minister Ibrahim Murad suggested introducing a “fuel card” scheme under which students would receive 10 liters of subsidized petrol every month. He said the recent increase of Rs 55 per liter in oil prices had significantly increased travel costs for students traveling to educational institutions.

Murad argued that a targeted subsidy could help students continue attending schools and universities without putting additional financial pressure on families.

The policy moves come as global oil markets remain volatile amid rising geopolitical tensions.

Read: KP announces closure of schools for two days a week for two months amid fuel crisis

On Monday, Brent crude rose to a high of $119.50 a barrel after Iran launched new attacks on energy facilities in the Gulf. Prices subsequently retreated sharply to around $82 per barrel as markets reacted to changing signals from Washington and Tehran.

US President Donald Trump said the conflict in the Middle East could end sooner than expected, even as demonstrations were held in Iran in support of the country’s new supreme leader, Mojtaba Khamenei.

Iranian state media broadcast images of large crowds in several cities waving national flags and holding portraits of his father, Ayatollah Ali Khamenei, who was killed in an Israeli attack on the first day of the war.

Mixed signals from political leaders sent global markets on a rollercoaster ride. Oil prices rose while stock markets fell earlier in the day, before reversing course after Trump’s comments and reports that sanctions on Russian energy exports could be eased.

For Pakistan, which relies heavily on imported fuel, that volatility has immediate economic implications. Higher oil prices often raise transportation costs, contribute to inflation and increase pressure on public finances.