Govt expands austerity drive as fuel prices rise and global oil markets turn volatile
Prime Minister Shehbaz Sharif chairs a meeting to review the implementation of government-announced austerity measures in light of the current regional situation, on Tuesday. Photo: PID
Facing rising fuel costs, the federal and provincial governments have introduced a range of austerity steps — from declaring an additional weekly holiday to cutting free petrol for ministers, limiting protocol vehicles and proposing subsidised fuel for students — even as global oil prices show signs of easing after recent market volatility.
Prime Minister Shehbaz Sharif chaired a high-level meeting in Islamabad today to review the implementation of steps designed to conserve energy and curb government spending in light of shifting global economic conditions.
Following the meeting, authorities announced that Friday would be observed as an additional weekly holiday to help reduce fuel use and electricity demand.
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Addressing participants, PM Shehbaz said the government was making every effort to maintain economic stability despite challenging international circumstances.
To oversee 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.
وزیراعظم محمد شہباز شریف کی زیر صدارت موجودہ علاقائی صورتحال کے پیش نظر کفایت شعاری اور توانائی کی بچت کے حوالےسے حکومت کے اعلان کردہ اقدامات کے نفاذ پر جائزہ اجلاس
اجلاس میں ہفتہ وار اضافی چھٹی جمعہ کے روز کرنے کا فیصلہ
حکومت ہر ممکن کوشش کررہی ہے کہ عالمی حالات کے باوجود… pic.twitter.com/jlSwj8tWVqThe premier also directed that the impact of the austerity measures be assessed through a third-party audit to ensure transparency and evaluate their effectiveness. All ministries and divisions were instructed to enforce policies promoting simplicity, cost-cutting and energy conservation.
In order to ensure the proper implementation of austerity campaign, government departments must submit photographic evidence of vehicles withdrawn from official use.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 efforts and workforce management to the oversight committee.
Separately, FM Dar chaired a meeting with senior officials of the Ministry of Foreign Affairs to review the implementation of austerity measures announced by the prime minister.
According to officials, the meeting assessed steps 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 expenditure.
During the meeting, the deputy prime minister stressed the importance of prudent use of public resources and directed officials to ensure that the ministry’s activities remained consistent with the government’s commitment to economic responsibility.
Deputy Prime Minister/Foreign Minister chaired a meeting with senior officials of the Ministry of Foreign Affairs to review implementation of the austerity measures announced by the Prime Minister.
DPM/FM stressed the need for fiscal discipline, prudent use of public resources,… pic.twitter.com/HiPyWNcz4LHe emphasised the adoption of efficient administrative practices and called for limiting expenditures to essential commitments. Officials were instructed to identify areas where operational costs could be optimised without affecting Pakistan’s diplomatic outreach and the delivery of consular services.
FM Dar said the Foreign Office must continue to perform its diplomatic functions effectively while contributing to the government’s wider austerity drive.
Reaffirming full support for the government’s initiative, the deputy prime minister underscored the ministry’s commitment to responsible governance, transparency and the efficient utilisation 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 the suspension of government-provided fuel for provincial ministers until the petroleum supply situation stabilised. Fuel allowances for official vehicles used by senior government officers were also cut by 50%.
Protocol convoys accompanying ministers and senior officials were restricted as well. Only one vehicle would be permitted for essential security purposes.
Read: Sindh announces school closure from March 16–31, govt staff to work from home on Fridays
Punjab also expanded remote work in government offices, allowing only essential staff to report to workplaces while others would perform duties from home. Officials said public services would continue through digital platforms, including the province’s “Maryam Ki Dastak” initiative.
In addition, authorities curtailed official outdoor events and postponed several public gatherings.
The provincial administration also ordered the creation of District Petroleum Monitoring Committees to oversee fuel availability and prevent hoarding or illegal distribution. The Punjab Information Technology Board was tasked with developing a digital track-and-trace system to monitor petroleum supplies across the province.
مشکل وقت، سخت فیصلے!
وزیر اعلیٰ پنجاب مریم نواز کے غیر معمولی اقدامات۔۔۔
خطے میں جنگ کے اثرات اور پٹرولیم بحران کے پیشِ نظر، وزیر اعلیٰ پنجاب نے صوبے کی بقا اور وسائل کی بچت کے لیے بڑے اور اہم فیصلے کیے ہیں۔ ان اقدامات کا مقصد عوام کو ریلیف فراہم کرنا اور سرکاری سطح پر کفایت…Rising fuel costs also prompted proposals aimed at easing the burden on students.
Former Punjab transport minister Ibrahim Murad suggested introducing a “fuel card” programme under which students would receive 10 litres of subsidised petrol each month. He said the recent increase of Rs55 per litre in petrololeum prices had significantly raised commuting costs for students traveling to educational institutions.
Murad argued that a targeted subsidy could help students continue attending schools and universities without placing additional financial pressure on families.
The policy moves come as global oil markets remain volatile amid escalating geopolitical tensions.
Read: K-P announces two-day weekly school closure for two months amid fuel crisis
On Monday, Brent crude surged to a peak of $119.50 per barrel after Iran launched fresh strikes on energy installations in the Gulf. Prices later retreated sharply to around $82 per barrel as markets reacted to shifting signals from Washington and Tehran.
US President Donald Trump said the conflict in the Middle East could end sooner than expected, even as rallies took place in Iran backing 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 strike on the first day of the war.
The conflicting signals from political leaders sent global markets on a rollercoaster ride. Oil prices surged while stock markets slid earlier in the day, before reversing course after Trump’s comments and reports that sanctions on Russian energy exports might be eased.
For Pakistan, which relies heavily on imported fuel, such volatility carries immediate economic implications. Higher oil prices typically push up transportation costs, contribute to inflation and increase pressure on public finances.