Pakistan imposes fresh austerity measures amid fuel crisis
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New Delhi, Sept 18: Pakistan’s government has imposed a fresh set of austerity and fuel-conservation measures, including a 50 per cent cut in fuel allocations for official vehicles, restrictions on government spending and a temporary ban on official foreign travel, as rising international petroleum prices put additional pressure on the country’s economy.
Prime Minister Shehbaz Sharif approved the nationwide austerity campaign on Thursday amid continuing tensions in the Middle East and a sharp increase in global oil prices. The government said the measures were aimed at conserving fuel, reducing unnecessary expenditure and protecting national resources.
Under the new measures, fuel allocations for government vehicles will be reduced by 50 per cent for three months. Operational vehicles of the armed forces, civil armed forces, law-enforcement agencies, emergency services and the Federal Board of Revenue will be exempted. Administrative and non-operational vehicles, however, will not receive exemptions.
The government has also ordered a 5 per cent reduction in the non-ERE budget for the current financial year. A complete ban has been imposed on the purchase of new government vehicles and most durable goods, with IT-related purchases exempted.
Official foreign travel has been prohibited for three months, except for specified scholarships, training programmes and institutional commitments. Where foreign travel is unavoidable, ministers, advisers and government officials will have to travel economy class.
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Pakistan slashes official vehicle fuel by 50%, slaps a three-month foreign travel ban in a fresh austerity drive as West Asia war impact continues.
Budget cuts, a freeze on new cars and durables, plus early shop closures, also take effect immediately.
Full notice: pic.twitter.com/mJDmTCn6ys
The government has further ordered ministries and departments to make maximum use of video and teleconferencing. Official dinners have been prohibited except those considered necessary for visiting foreign delegations. Government-funded seminars, conferences and training programmes have also been restricted, with unavoidable events to be held at government facilities.
The austerity measures extend beyond government offices. Shops, markets, shopping malls, bazaars and general stores will have to close by 9 pm. Marriage halls and other venues for events will close by 10 pm, while restaurants, cafes and food outlets will close by 11 pm. Takeaway and home-delivery services have been exempted.
Hospitals, clinics, pharmacies, laboratories, bakeries, fuel stations, CNG stations, electric-vehicle charging facilities, gyms, sports facilities, IT companies and call centres will remain exempt from the closing-time restrictions.
The government has also continued its single-dish policy for weddings and other functions and has asked provincial and regional governments to consider adopting similar fuel-conservation and austerity measures. A monitoring committee will obtain implementation reports from ministries, departments, public-sector organisations and provincial governments and submit weekly progress reports to the Prime Minister.
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The measures come as Pakistan faces heightened vulnerability to international energy-price shocks. The country has also introduced a fuel-relief programme providing a subsidy of 100 Pakistani rupees per litre to eligible motorcycles, rickshaws and cars with engines up to 800cc. The government has allocated 25 billion rupees a month for the scheme.
The latest austerity package highlights the pressure on Pakistan’s economy from high energy costs and its continuing dependence on external financial support.