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Pakistan announces austerity plan: Foreign trips banned for ministers, schools closed, salaries cut

By The South Asia Times

ISLAMABAD - The government of Pakistan on Monday announced sweeping austerity measures, including banning most foreign travel for ministers, reducing salaries of officials, and limiting government operations, as it attempts to cope with a global fuel crisis triggered by the US–Israel war on Iran.

Prime Minister Shehbaz Sharif said the measures were necessary as global oil prices surged above $100 per barrel amid disruptions to Middle Eastern energy supplies.

Pakistan, which relies heavily on imported fuel from Gulf countries, faces mounting economic pressure as the conflict continues.

Under the new plan, ministers, advisers, and government officials will be banned from foreign trips unless deemed essential for national interests. The federal cabinet has agreed to forgo its salary for the next two months, while parliamentarians will face a 25 percent pay cut.

Fuel allowances for official vehicles will be reduced by half, and nearly 60 percent of government vehicles will be taken off the roads temporarily.

The government has also imposed a ban on purchasing new vehicles, furniture, and air conditioners for public departments, while overall government expenses will be reduced by 20 percent.

To conserve energy, offices will operate on a four-day workweek with only 50 percent of staff present, while the remaining employees will work from home. Banks, however, will remain open under normal schedules.

The education sector will also be affected. Schools across the country will begin a two-week break later this week, while universities and higher educational institutions will shift to online classes. Schools will also observe two weekly holidays once they reopen.

The government has further banned official dinners, conferences in hotels, and other ceremonial events to reduce costs.

Sharif urged national unity during what he described as a difficult economic period, warning oil profiteers and hoarders of strict legal action if they attempt to exploit the crisis.