Prime Minister Shehbaz Sharif is expected to unveil a national austerity and savings plan today (Monday) in a bid to curtail fuel demand amid the energy price hike triggered by the ongoing U.S.-Israel-imposed Iran war.
On Saturday, the federal government abruptly raised petrol and diesel prices by Rs. 55/liter amidst surging global oil prices, defending its decision as necessary to discourage hoarding. However, experts have noted the price surge primarily aims to punish consumers while benefiting oil marketing companies, who had purchased the oil currently being sold weeks prior to the price hike. Criticism has also mounted on the government for failing to take any steps to curtail its own demand, with officials enjoying lavish fuel allowances, as it calls on citizens to exercise restraint.
In a statement, the Prime Minister’s Office said Sharif chaired a meeting on Sunday to discuss measures aimed at maintaining the stability of the national economy in light of the ongoing regional conflict. The meeting decided to formally announce an austerity and savings plan today (Monday).
The meeting’s briefing informed the prime minister that the current regional situation has potential to impact Pakistan’s economy, particularly the supply of energy and price fluctuations in global markets. According to the statement, Sharif maintained all possible steps would be taken to deal with the current situation, ensuring full protection of public interests and safeguarding economic stability.
The prime minister, it said, directed the federal cabinet, all elected representatives at the federal and provincial levels, and senior government officials to play their full role in providing relief to the public and ensuring efficient use of resources. He also made it clear that all government employees and ministers must adopt simplicity and austerity, emphasizing the need to ensure wise use of national resources during challenging times.
However, the government has decided not to implement any austerity measures on the industrial and agricultural sectors to ensure national production, exports and food security are not impacted.
“Once the difficult phase passes and the economy becomes stronger, the government will provide maximum possible relief to the public,” he claimed, adding the burden of savings and austerity should be fairly shared between everyone.
Indicating the government has little plan to actually impose any restrictions, the statement said the prime minister had called on the privileged and elite classes of society to “voluntarily” set an example for necessary adjustments.
Despite the austerity plans, the government continues to claim the country has adequate reserves of diesel, petrol, and other petroleum products and has plans to deal with any emergency situation.
Authorities have also decided to continuously monitor global oil prices and supply conditions and supply fuel on priority basis to essential sectors.
Sources said the government is envisaging a three-phase strategy to tackle the current crisis. In the first phase, energy-saving measures will be implemented within the public sector; the second phase would see expansion to private schools, universities and hospitals and remote working arrangements.