The federal government on Monday extended its ongoing austerity drive and fuel conservation measures until June 13 as uncertainty persists over efforts to restore peace in the Middle East and reopen the Strait of Hormuz shipping lane.
In a notification, the Cabinet Division said Prime Minister Shehbaz Sharif had approved the extension on the recommendations of the implementation committee. It said the extension would apply to a 50% reduction in fuel supply for official vehicles, as well as a 60% reduction in official vehicles on the roads. All other measures previously notified would continue as per individual notifications, it added.
The government introduced its austerity plan on March 9, shortly after hiking fuel prices due to the disruption of supply lines. The Strait of Hormuz, through which over 20% of the world’s oil supply passes, was blockaded by Iran in retaliation to joint attacks by the U.S. and Israel on Feb. 28. On April 8, Pakistan mediated a ceasefire between the two sides that persists though has been strained amidst a deadlock in talks.
Apart from the notification’s extended measures, the government had previously announced a four-day workweek for government offices; called upon federal and provincial government departments to reduce non-essential expenditure by 20% during the final quarter of FY26; and banned all but mandatory official foreign visits by ministers, parliamentarians, and government officials.
The April notification had also said up to 50% of government employees would work from home on alternate days, except those in essential services, and directed for meetings to take place virtually whenever possible.