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Pakistan has announced fresh austerity measures to conserve fuel as the conflict in the Gulf region intensifies, including restrictions on government vehicle use, a ban on new vehicle purchases and limits on officials’ foreign trips.
The government has also ordered a halt to official dinners as rising fuel prices and disruptions to liquefied natural gas (LNG) supplies raise concerns over gas and power shortages.
According to Reuters, the measures were announced on Thursday. The government has also banned the purchase of all durable goods, except information technology equipment, and ordered officials to use teleconferencing instead of attending meetings in person.
It is the second such austerity drive in Pakistan this year. Similar measures were introduced in March to cut fuel consumption and government spending, including a two-week closure of schools, reduced government fuel use and expanded work-from-home arrangements for employees.
Meanwhile, Pakistan launched a new fuel subsidy programme on Wednesday to ease the impact of higher prices. Under the scheme, owners of motorcycles, rickshaws and small cars will receive a subsidy of 100 Pakistani rupees, or about 36 US cents, per litre within a specified monthly limit.
The measures come amid disruptions to oil and gas exports through the Strait of Hormuz following US and Israeli strikes on Iran, according to the Reuters report, adding pressure to global energy markets.
The ongoing conflict involving Saudi Arabia and Iran-backed Houthi forces has also raised risks to commercial shipping through the Red Sea, further increasing concerns over fuel supplies and prices in Pakistan.
Source: Reuters
