Prime Minister Shehbaz Sharif visits President Asif Ali Zardari at Aiwan-e-Sadr. PHOTO: PID
ISLAMABAD:
Prime Minister Shehbaz Sharif on Monday extended the nationwide austerity drive and fuel conservation measures until June 13, as the government continues to manage economic pressure caused by the Middle East conflict and rising global oil prices.
According to a Cabinet Division notification, the extension was approved following the recommendations of the committee monitoring fuel conservation and the implementation of austerity measures, which were first introduced on March 9 after US and Israeli attacks on Iran caused disruptions to global oil supplies.
Under the expanded plan, fuel subsidies for official vehicles will continue to be reduced by 50%, while 60% of government vehicles will remain off the roads. Operational vehicles, including ambulances and public buses, are exempt from the restrictions.
The government also maintained a ban on visits by ministers and officials abroad, except for trips considered essential to national interests. Previous measures will continue, including a four-day work week for government offices from Monday to Thursday.
The austerity plan also includes a 25% pay cut for parliamentarians, while employees of state-owned companies and government-supervised institutions face reductions ranging from 5% to 30%. Government departments have also been ordered to reduce non-essential expenditure by 20%.
Up to 50% of government employees can also work from home on alternate days, except in essential services, while officials have been ordered to travel in economy class and prefer virtual meetings to physical ones to reduce costs.
The Prime Minister has tasked the Intelligence Bureau with carrying out a third-party audit to ensure compliance with the measures. Meanwhile, targeted relief measures, including fuel subsidies for motorcyclists, farmers and transporters, have also been expanded to cushion the impact of rising fuel prices.
The president urges action
President Asif Ali Zardari ordered the use of all possible measures to reduce the impact of inflation on the people in a meeting with Prime Minister Shehbaz Sharif.
A statement from the presidency said the two held a meeting at Aiwan-e-Sadr with Deputy Prime Minister and Foreign Minister Ishaq Dar, National Assembly Speaker Ayaz Sadiq, Home Minister Mohsin Naqvi, Law Minister Azam Nazeer Tarar and others also present.
“The President directed possible measures to reduce inflationary pressures, ensure availability of essential goods and provide relief to the common man,” the statement said.
The president said that despite the difficult geographical and regional situation, tensions in the Middle East and the disruption of the supply chain, maximum relief must be provided to the population.
The general situation in the country, issues related to Afghanistan and the changing situation in the region were also discussed in the meeting, the statement said.
Participants in the meeting also paid tribute to the martyrs of last year’s May conflict against India and the professional capabilities of the armed forces, while reiterating “the unwavering commitment to national defence.”
The directives came after the government on Friday increased the prices of petrol and high-speed diesel (HSD) by Rs 15 amid fluctuating global oil prices due to the closure of the Strait of Hormuz. It was the second increase in fuel prices in May.
The sharp rise in oil prices has triggered a new wave of economic anxiety across Pakistan, with shippers raising fares, companies warning of rising operating costs and ordinary citizens bracing for another inflationary shock in an economy already under severe pressure.
(WITH INPUTS FROM THE NEWS DESK)
