PM Shehbaz extends austerity measures till June 13 to tackle fuel crisis amid US-Iran conflict

Prime Minister Shehbaz Sharif on Monday extended several austerity measures aimed at reducing fuel consumption till June 13 to cope with the ongoing fuel crisis amid the US-Iran conflict.

According to a notification issued by the Cabinet Division, “In consideration of the recommendations of the Committee for Monitoring and Implementation of Fuel Conservation and Additional Austerity Measures, the prime minister has been pleased to extend the applicability of the following additional austerity measures until June 13.”

The notification further stated that the key austerity measures include a 50% reduction in fuel provision for official vehicles, 60% of official vehicles would be grounded, and a complete ban on foreign visits and travel would be enforced, with exceptions specified in earlier notifications.

“Other additional austerity and fuel conservation measures, as notified from time to time via this Division's notifications, shall continue to remain in force for the periods specified in the respective notifications,” the statement read.

The Cabinet Division also clarified that measures for which no specific period or end date had been defined would remain applicable until further notice.

Earlier in a meeting with PM Shehbaz, President Asif Zardari directed the use of all possible measures to reduce the impact of inflation on the populace.

The president said that despite the difficult geographical and regional situation, tensions in the Middle East and disruption of the supply chain, maximum relief should be provided to the people.

PM Shehbaz, in a televised address to the nation in March, had unveiled several energy conservation and austerity measures to preempt fuel shortages.

He announced a four-day work week and a work-from-home policy, which included a 50% reduction in fuel allocated to government vehicles, except for ambulances. Additionally, 60% of vehicles used by government departments were taken off the roads.

The prime minister stated that members of the cabinet, including ministers, advisers, and special assistants, would not draw salaries for two months, while the salaries of members of parliament would be reduced by 25%.

Read More: PM announces 4-day work week, work from home

"Expenditures of all government departments, apart from salaries, would be reduced by 20%," he further said.

It was also announced that senior government officials in Grade 20 and above, earning more than Rs300,000 per month, would have two days' salary deducted, which would be used to provide relief to the public.

A complete ban was imposed on the purchase of vehicles, furniture, air conditioners, and other equipment by government departments as part of cost-cutting measures.

In addition, a complete ban on foreign visits by federal and provincial ministers, advisers, special assistants, and other government officials, except for trips deemed "essential for national interest," was also implemented.