PM Shehbaz announces austerity measures to brace for economic impact of Middle East war – Pakistan

Prime Minister Shehbaz Sharif on Monday announced a host of austerity measures to conserve fuel in view of the global fuel crisis triggered by the US-Israel war on Iran.

At the outset of his address, the premier said the entire region had been gripped by war. He said that Pakistan was making efforts to solve the situation through diplomacy.

He said Pakistan was also facing terrorism on its Western borders. He said that the country’s armed forces were dealing with the situation under the leadership of Chief of Defence Forces Asim Munir.

He also condemned the US-Israeli attacks on Iran that resulted in the assassination of Supreme Leader Ayotollah Ali Khamenei. He also condemned Iran’s retaliatory attacks on friendly Gulf countries and said that Pakistan stood shoulder to shoulder with them.

PM Shehbaz said that due to the situation, the global price of oil had jumped to more than $100 per barrel. “If things keep progressing in this manner, then the situation will get out of hand,” he said.

He said that Pakistan depended on oil and gas coming from the Gulf. “Keeping this reality in mind, the government took difficult decisions for the country’s economy,” he said.

He said that it needed to be acknowledged that the global price of oil was not in Pakistan’s hands.

“When conflict arises or war erupts in the region, the effects are felt on energy prices,” he said. At the same time, he assured the nation that the government was making efforts to ensure the economy remained strong.

He said that the decision to raise the price of petroleum products was a “difficult” one, where his head was at war with his heart. He said that it was advised that prices be raised more than what was notified.

“We tried to take the middle road so that the burden on you is less,” he said. Highlighting the economic pressures faced by the country, he said that Pakistan was close to default some time back. However, the government, setting aside political differences, gave preference to the people.

“And you supported us and demonstrated patience,” he said. He said that inflation had fallen, the rupee was stable and electricity prices had also fallen. He assured the nation that the government would try its best to burden the people as little as possible.

He said that in the coming days, oil prices would again increase. “But I will try that the burden does not fall on you. For this, efforts are ongoing day and night,” he said.

He said that a meeting was convened on Monday, where austerity measures were discussed. Giving details, he said that for the next two months, the fuel allowance of official vehicles would be cut by 50 per cent. However, ambulances were not included in this.

He said that for the next two months, 60pc of all government vehicles were being stopped. He further said that for the next two months, the federal cabinet would forgo its salary.

He further said that the salary of parliamentarians would be cut by 50pc. Moreover, two days’ salary of BS-20 government officials, who earned more than Rs300,000, would be used for the people.

The premier said that the expenses of government departments would also be reduced by 20pc. He said that there will be a ban on purchasing vehicles, furniture and air conditioners for government departments.

Further, a ban has been imposed on foreign trips by ministers, advisers and government officials “apart from those that are essential for the country’s interests”.

He went on to say that teleconferencing and online meetings would be preferred so that fuel could be conserved. He added that official dinners and Iftar parties had also been banned.

He said that to reduce government expenses, seminars and conferences would be hosted on government premises instead of hotels.

PM Shehbaz said that to conserve fuel, decisions had also been taken for the public and private sectors. He said that apart from essential services, staff would work from home 50pc of the time.

He said that offices would only open four days a week. “However, this will not apply to banks,” he said.

He said that all schools would also have two holidays and all higher educational institutions would begin online classes.

He said that directives had been issued in this regard to all provincial governments.

Concluding his address, PM Shehbaz said that the world was facing a host of “new challenges”. He said that at this delicate turn, the country needed to show unity now more than ever.

More to follow