Sindh announces austerity measures to curb fuel use amid Iran war

In line with the the Centre’s savings plan, the Sindh government on Tuesday announced a series of austerity measures aimed at reducing fuel consumption and curbing government expenditure amid soaring oil prices linked to the ongoing Iran war.

The provincial measures follow a nationwide austerity initiative announced by Prime Minister Shehbaz Sharif a day earlier, which included spending curbs and energy conservation steps to cope with the global fuel crisis triggered by the ongoing US-Israel-Iran conflict.

Pakistan, like many other countries, is facing supply constraints after the Strait of Hormuz — a vital global oil transit route — was disrupted, affecting fuel shipments worldwide.

The situation worsened after Iran retaliated against US military installations in the Middle East following joint strikes by Washington and Tel Aviv, creating hurdles for major oil-producing states in delivering supplies to international buyers.

Amid the supply disruptions, Pakistan recently raised petrol and diesel prices by around 20%, prompting federal and provincial governments to adopt austerity and energy-saving measures to manage consumption and stabilise the economy.

Austerity measures

• Schools to remain closed from March 16 to March 31; exams to continue as scheduled
• Government offices to observe work-from-home on Fridays without declaring a holiday
• 50% cut in fuel consumption of government vehicles for the next two months
• 60% official vehicles to remain grounded across provincial departments for two months
• Provincial ministers to forgo salaries and allowances for April, May and June
• All official travel by government officials to be undertaken in economy class
• Ban imposed on purchase of new vehicles and furniture by government departments
• Chief minister’s official aircraft to remain grounded during austerity period
• No government ceremonies to be held in hotels; events restricted to official buildings
• Ban imposed on official iftar dinners and other government-hosted gatherings
  

Addressing a press conference after a Sindh cabinet meeting chaired by Chief Minister Murad Ali Shah, Senior Minister Sharjeel Inam Memon said the provincial government had adopted multiple steps to manage resources and limit fuel usage.

He said the cabinet had decided to cut fuel consumption of government vehicles by 50% for the next two months, while 60% of official vehicles would remain off the roads during the same period.

Memon further announced that provincial ministers had decided to forgo their salaries and allowances for three months, adding that they would not draw pay for April, May and June as part of the austerity drive.

The minister also said that security provided on a discretionary basis would be withdrawn, while ministers had returned police security vehicles assigned to them.

He added that schools across Sindh would remain closed from March 16 to March 31, although examinations would continue as per the existing schedule.

According to the minister, government offices will observe work-from-home on Fridays, clarifying that the day would not be treated as an official holiday.

He also said the cabinet had imposed a ban on the purchase of new vehicles and furniture, while refreshments in government offices would remain prohibited for two months.

Memon urged officials to avoid unnecessary protocol and adopt a culture of simplicity, stressing that the provincial government stood firmly with the state and its institutions during challenging circumstances.

Furthermore, Memon said the decision regarding salaries of Members of the Provincial Assembly (MPAs) would be taken by the Sindh Assembly.

He added that all official travel by government officials would now be undertaken in economy class instead of business class as part of the austerity drive.

Memon said the provincial government was making every effort to reduce its expenditures amid the ongoing economic pressures.

He further announced that no government ceremonies would be held in hotels, adding that all official events would take place in government buildings.

The minister reiterated that security provided to individuals without necessity was being withdrawn, while unnecessary police mobile vehicles assigned to certain individuals would also be recalled.

He added that no refreshments would be served in government offices, advising officials to bring their own food and drinking water.

Memon said the government and institutions were united during the difficult period and stood alongside the federation. He stressed that while the government wanted to promote austerity, it did not intend to disrupt economic activity.

The minister said shop timings during Eid days would remain unchanged.

He also announced a ban on official iftar and dinner gatherings, adding that no provincial minister would attend such events during the austerity period.

Memon said the Sindh chief minister and provincial ministers had surrendered their additional security arrangements as part of the cost-cutting measures.

He added that the aircraft used by the Sindh chief minister would remain grounded and would not be utilised.

Commenting on the fuel price hike, Memon said the federal government had not increased petroleum prices out of choice but due to the prevailing circumstances. He added that savings generated through austerity measures would be utilised for public welfare.