Prime Minister Shehbaz Sharif on Monday announced a series of austerity measures, including salary cuts for lawmakers, reduced government spending and restrictions on official travel, as Pakistan faces rising global oil prices amid growing regional security challenges.
In a nationally televised address after a meeting involving federal and provincial governments, he said the country would adopt policies of “simplicity and savings” to reduce public expenditures and manage economic pressure.
Under the announced measures, fuel allocated to vehicles of government departments would be reduced by 50% for two months, while 60% of official vehicles will remain off the road during the same period. Government departments will also cut their expenditures by 20%.
Sharif said members of the federal cabinet, advisers and special assistants would not take salaries for two months, while salaries of members of parliament would be reduced by 25% during this period. Senior officers of Grade 20 and above will have two days’ salary deducted for public relief efforts.
The prime minister also announced a ban on foreign visits by federal and provincial ministers, advisers, special assistants and government officials, saying only “extremely necessary” visits in the national interest would be permitted. Governors will also be subject to the travel restrictions.
Additionally, the government has banned official dinners and iftar parties at state expense, while seminars and official events would be held at government venues instead of hotels to reduce costs. The purchase of vehicles, air conditioners, furniture and other items for government offices has also been prohibited.
Sharif said public offices would operate four days a week—a policy that will not apply to banks—while 50% of staff in both the public and private sectors will work from home, except for essential services.
In the education sector, the government has ordered all schools to close for two weeks starting at the end of the current week, with online classes to continue during that period.
The prime minister warned hoarders and profiteers against taking advantage of the situation and said provincial governments had been directed to take action against illegal profiteering and stockpiling.
Sharif said the measures come amid rising tensions and instability in the Middle East and the broader region. He condemned Israeli attacks in Iran and on Saudi Arabia and other Arab countries, saying Pakistan stands with its “brotherly nations” and considers their security part of its own.
“The world is facing new challenges and the balance of power is changing,” Sharif said, adding that new alliances are emerging globally and Pakistan needs unity and a strong sense of national responsibility.
He noted that global crude oil prices have surged from about $60 to more than $100 per barrel in recent days, adding that Pakistan has little control over prices in the international market. He said the government had taken “difficult economic and administrative decisions” to stabilize the economy and address the energy crisis, including a recent increase in petroleum prices.
“Raising fuel prices was a painful decision,” he said. “The mind said there was no option, but the heart feared it would increase the burden on poor people,” he added.
The prime minister said further increases in fuel prices may be unavoidable in the coming days but pledged that the government would try to minimize the burden on citizens. He also urged wealthy Pakistanis to come forward and support those in need during difficult times, saying that when the nation faces hardship, those with means should step forward to help others.