Pakistan Announces Austerity Measures to Conserve Fuel as Gulf Conflict Spirals
The package includes a 50% cut in official fuel use, a full ban on government vehicle purchases and limits on travel and dining, officials said.
- On Thursday, the federal government announced austerity measures including a 50 per cent cut in fuel allocations for official vehicles and a 5 per cent reduction in non-employee-related expenditure for the current fiscal year.
- Spiking fuel prices due to the Gulf conflict prompted the measures, as fighting between Saudi Arabia and the Iran-backed Houthis imperils Red Sea trade and leaves Pakistan facing potential gas and power shortages.
- The Cabinet Division notification imposed a complete ban on official vehicle purchases and foreign travel for three months, though officials may undertake necessary trips in economy class if deemed "unavoidable."
- Starting Wednesday, the South Asian nation implemented a new policy offering motorcycle, rickshaw, and small-car owners a subsidy of 100 rupees a litre to ease the impact of rising prices.
- Marking the second time this year the government has unveiled such measures, the restrictions will remain in force for three months following similar steps taken in March to conserve fuel and cut spending.
16 Articles
16 Articles
Pakistan Enacts Austerity Amid Fuel Price Surge
Pakistan has introduced austerity measures to address rising fuel costs amid the Gulf conflict. These include reducing fuel for official vehicles, banning vehicle purchases by the state, foreign visits by officials, and official dinners. The measures aim to conserve energy and cope with the current economic crisis.
The Economic Times
Pakistan announces austerity measures to conserve fuel as Gulf conflict spirals
Pakistan announced austerity measures to conserve energy and reduce government spending. These steps include cutting fuel for official vehicles and banning new state purchases. The nation is facing potential gas and power shortages due to global conflicts. A subsidy is offered to motorcycle and rickshaw owners to ease price impacts. These austerity measures are being implemented for the second time this year.
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