Pakistan Announces Vehicle Restrictions, School Closures, Salary Cuts Over Energy Crisis
Pakistan cuts fuel use, closes schools, and reduces salaries to manage energy crisis amid West Asia tensions.
Pakistan on Monday announced a series of austerity measures to manage a worsening fuel crisis exacerbated by rising global oil prices and escalating tensions in West Asia. Prime Minister Shehbaz Sharif outlined the measures in a pre-recorded televised address, highlighting the country’s heavy dependence on imported energy and the strain on its fragile economy.
The government’s plan comes after recent hikes in petrol and diesel prices by 55 Pakistani rupees per litre—nearly a 20 per cent increase—citing surging global rates linked to the Middle East conflict. Sharif acknowledged that further price adjustments may be necessary but pledged to minimise the burden on citizens. Analysts have noted that Pakistan’s reliance on imported oil and liquefied natural gas has left it particularly vulnerable to global supply shocks and price volatility.
Under the austerity measures, fuel allocated to government vehicles will be cut by 50 per cent for the next two months, with approximately 60 per cent of departmental vehicles taken off the roads. Ministers, advisers, and special assistants will forgo salaries for two months, while members of parliament will face a 25 per cent pay reduction. Sharif also ordered a 20 per cent cut in expenditures for all government departments, excluding salaries.
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In another significant step, schools nationwide will remain closed for two weeks starting at the end of the current week, and higher education institutions are to switch immediately to online classes to conserve energy. These measures aim to curb domestic fuel consumption while prioritising essential needs.
Critics have questioned the government’s handling of the crisis. An editorial in The Express Tribune suggested that petrol price increases exceeded what was strictly necessary, implying the government may have generated additional revenue rather than merely passing on global price pressures to consumers.
The crisis underscores the vulnerability of Pakistan’s import-dependent economy, particularly given the strategic importance of the Strait of Hormuz for fuel supplies. The ripple effects are being felt regionally, with neighbouring Bangladesh also temporarily closing universities to conserve electricity and fuel. The developments highlight the broader economic pressures faced by countries heavily reliant on imported energy amid the ongoing geopolitical tensions in West Asia.
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