Austerity plan: Here are key measures taken by govt to conserve fuel

Prime Minister Shehbaz Sharif on Monday announced a range of measures to conserve fuel as Pakistan moves to mitigate the fallout from the ongoing war in the Middle East.

The announcement comes just days after the government hiked the price of petrol and diesel by 20% after global oil supply disruption took a hit from the conflict in the Middle East.

Addressing the nation, PM Shehbaz said the entire region had been gripped by conflict and stressed that Pakistan was pursuing diplomatic efforts to help defuse the crisis.

“The entire region is currently in a state of war,” the PM said, adding that Pakistan was making every effort through diplomatic channels to help resolve the situation.

According to a notification issued by the Cabinet Division of Pakistan, the austerity measures will apply across federal government establishments including ministries, departments, autonomous bodies, state-owned enterprises, the legislature, defence organisations and the judiciary.

Provincial governments have also been advised to adopt similar measures.

Here are the key measures unveiled by Prime Minister Shehbaz Sharif:

• Fuel provision for official vehicles reduced by 50% for two months.
• 60% of official vehicles in federal and provincial government departments remain off the roads during this period.
• Cabinet ministers, ministers of state, advisers and special assistants to the prime minister forego their salaries and allowances for two months.
• Members of the federal and provincial legislatures take a 25% voluntary cut in salaries and allowances for two months.
• Government officers in Grade-20 and above earning over Rs300,000 per month voluntarily give up two days’ salary, except those in the health and education sectors.
• Federal and provincial government departments reduce non-essential expenditure by 20% during the final quarter of the current fiscal year.
• The existing ban on the purchase of new government vehicles continues until June 2026, with no exemptions allowed.
• A complete ban on purchasing new durable goods for government offices remains in place, with limited exceptions for IT procurement after scrutiny.
• Official foreign visits by ministers, parliamentarians, and government officials banned, except for obligatory trips.
• All officials travelling abroad on official duty travel in economy class only.
• Physical meetings in government departments replaced with virtual meetings to reduce travel and accommodation costs.
• Official dinners not hosted, except in the case of visiting foreign delegations.
• Government seminars, training sessions and conferences require prior scrutiny and approval before being organised.
• Up to 50% of government employees work from home on alternate days, except those in essential services.
• Government offices operate on a four-day workweek, though the banking sector and essential services are exempt.
• The private sector advised, but not mandated, to adopt similar measures such as work-from-home arrangements and a four-day workweek where possible.
• All schools observe spring holidays from March 16 to March 31, 2026, though scheduled examinations continue.
• Colleges and universities shift to 100% online classes during this period.
• Reduced speed limits apply on roads, with motorways set at 90–100 km/h and highways at 65–80 km/h.
• A limit of 200 guests imposed at wedding functions, where only one dish served.