The federal government on Monday extended its austerity and fuel conservation measures until June 13 as tensions in the Middle East continue and diplomatic negotiations between the United States and Iran remain unresolved.
According to an official notification issued by the Cabinet Division, the extension was approved by Shehbaz Sharif following recommendations from the government’s implementation committee.
Under the revised directives, a 50% cut in fuel allocations for official vehicles will remain in effect during the extended period. The government also decided to keep 60% of official vehicles off the roads as part of its ongoing cost-cutting campaign.
The austerity measures were originally introduced by PM Shehbaz on March 9 during a televised address, shortly after the government increased petrol and diesel prices by 20%.
Fuel prices surged across Pakistan after disruptions in global oil supplies caused by the closure of the Strait of Hormuz, a major global oil and gas shipping route.
Iran shut down the strait following joint military strikes by the United States and Israel, which began on February 28 and continued until April 8 before ending through a Pakistan-mediated ceasefire.
Despite the temporary truce, Washington and Tehran remain divided over proposals for a lasting peace agreement, particularly regarding issues linked to blockades around the Strait of Hormuz.
In his March 9 address, the prime minister said the wider Middle East conflict had created serious economic challenges for the region and stressed that Pakistan was actively pursuing diplomatic efforts to help reduce tensions.
The austerity plan applies to all federal institutions, including ministries, departments, autonomous bodies, state-owned enterprises, parliament, defence organisations, and the judiciary.
Besides fuel restrictions, the government reduced office operations to a four-day workweek, although banks and essential services were exempted from the policy.
Federal and provincial departments were also directed to cut non-essential expenditures by 20% during the final quarter of the fiscal year.
The measures further included a ban on non-essential foreign visits by ministers, lawmakers, and government officials, while mandatory official travel was restricted to economy class.
Additionally, up to half of government employees were instructed to work from home on alternate days, excluding personnel engaged in essential services.
The government also encouraged virtual meetings in place of physical gatherings to further reduce operational expenses.