ISLAMABAD (Dunya News) – Prime Minister Shehbaz Sharif has extended the nationwide austerity drive until June 13 as Pakistan continues to manage the economic fallout from the ongoing Middle East conflict and rising global oil prices.
The austerity measures, first introduced in March following the escalation triggered by US-Israeli strikes on Iran, aim to curb fuel consumption and reduce government expenditure.
According to a Cabinet Division notification, the extension was approved after reviewing recommendations from a committee overseeing fuel conservation and austerity implementation.
Under the renewed measures, fuel allowances for official vehicles will remain reduced by 50 per cent, while 60 per cent of government vehicles will stay off the roads. A ban on foreign visits by ministers and officials will also continue, except for engagements deemed essential to national interests.
Earlier steps, including a four-day working week for government offices from Monday to Thursday, will remain in place, though the policy does not apply to banks, essential services, agriculture or industry.
The government has also enforced salary cuts, with parliamentarians facing a 25 per cent reduction and employees of state-owned entities seeing deductions ranging from 5 to 30 per cent. Additionally, departmental spending has been cut by 20 per cent, alongside restrictions on purchasing vehicles, furniture and other equipment.
The prime minister has assigned the Intelligence Bureau to conduct a third-party audit to ensure compliance with the measures.
Meanwhile, targeted relief initiatives — including fuel subsidies for motorcyclists, farmers and transporters — have been extended to help offset the impact of rising fuel prices.