Govt announces energy-saving austerity plan

Published 10 Mar, 2026 08:18am 5 min read

Prime Minister Shehbaz Sharif on Monday announced a detailed energy-saving and austerity plan to cut government expenditure and reduce the use of fuel in the public and private sectors to stave off the effects of high oil prices on the general public.

After finalising the plan in a meeting of federal and provincial governments meant to cut government expenditure and provide relief to the public, the prime minister announced the measures in a televised speech.

The prime minister said that for the next two months, a 50 per cent reduction would be made in the fuel received by government department vehicles. It does not include ambulances and public buses.

“All 60 per cent of vehicles of government departments are being grounded to save fuel. For the next two months, ministers, advisers, and special assistants will not draw salaries. The salaries will be spent on public relief. The salaries of members of parliament will be cut by 25 per cent,” he continued.

He said two-day salaries of officers in grade 20 and above — whose salaries are more than Rs300,000 — will be deducted for use of public relief.

The expenses incurred by all government departments, except for the salaries, are being reduced by 20 per cent.

He said that a complete ban has been imposed on the purchase of furniture, air conditioners, and other items in government departments.

A complete ban has also been imposed on foreign visits by federal and provincial ministers, advisers, special assistants, and government officers, except for those visits that are essential for the national interest.

This ban will also apply to the prime minister, chief ministers, and governors.

Teleconferencing and online meetings will be given priority so that maximum fuel saving is possible.

Government dinners and Iftar parties are completely banned, the prime minister added.

He said to cut expenditure, seminars and conferences will not be held in hotels but at government premises, and a special committee will give approval for this purpose.

The prime minister said decisions have also been made regarding the government and private sector for energy conservation.

In the government and private sectors, except for essential services, 50 per cent of the staff will work from home. Offices will be open for only four days a week, he added.

An additional holiday is being given per week to conserve oil. This will not apply to banks.

The decision to work from home and an additional weekly holiday will not apply to the industry and agriculture sectors.

Further, all schools are being given two weeks of vacation and online classes are being started immediately in all higher education institutions, he added.

While giving reasons for the recent increase in fuel prices by the government, he said a very serious and dangerous situation was facing the region.

“Unfortunately, the entire region, Iran and the Middle East, is currently in the throes of a dangerous war. The loss of innocent human lives, the suffering of the displaced and the impact on peace are a cause of deep concern for all of us,” he remarked.

He said Pakistan was trying its best in this tense situation to resolve the issues through deliberation and diplomacy.

“On the other hand, we are also facing terrorism on our western borders. In response to the infiltration and attacks by the facilitators of the terrorists in Afghanistan, the brave forces, under the leadership of our determined and brave General Syed Asim Munir, are performing their sacred duty of protecting the security and sovereignty of the beloved homeland and protecting the lives and property of the citizens with utmost dedication.”

He said the government and people of Pakistan expressed deep sorrow over the martyrdom of Ayatollah Seyyed Ali Khamenei, his family and innocent Iranian brothers and sisters as a result of the Israeli abhorrent attacks on Iran. “We strongly condemn these attacks.”

He said, “Pakistan also strongly condemns the attacks on its brotherly Muslim countries; Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, Jordan, Lebanon, Oman, Turkiye and Azerbaijan, and expresses regret over the loss of life.”

“These attacks pose serious threats to the peace and stability of the entire region,” he asserted, adding, “We have had detailed discussions with the leaders of these brotherly countries, and on your behalf, I have conveyed a message to the people and leadership of these countries that Pakistan stands shoulder to shoulder with them in this hour of trial.”

“We consider the security and stability of these brotherly countries as part of our own security and stability,” he added.

The prime minister drew attention to the fact that “in today’s world, a crisis that arises in one country spreads to other countries in a few days”.

He mentioned that the price of crude oil in the global market, which was about $60 per barrel a few days ago, had suddenly increased to more than $100.

He warned that if the situation continued to deteriorate in this way, these prices could get out of control.

He noted that Pakistan’s economy, agriculture, transportation and much of daily life were reliant on the supply of oil and gas from the Gulf.

“Keeping this fact in mind, the government has taken extremely difficult decisions to stabilise the economy. Such administrative and economic decisions were not easy at all,” he stressed, adding, “We have introduced financial discipline and reforms in the energy sector so that the energy deficit facing Pakistan can be reduced.”

Shehbaz Sharif said the difficult situation at the global level was having an adverse effect on everybody.

However, he assured that the government was making every effort to keep Pakistan’s economy stable despite these most difficult global conditions.

The prime minister cautioned the vested interests, hoarders and illegal profiteers of petrol and diesel not to try to gain illegal benefits; otherwise iron hand of law will come into force and strong action will be taken against such elements without discrimination.

He said he had issued instructions to all provincial governments to protect consumers.

Earlier, a meeting was held to finalise austerity measures in a meeting chaired by the prime minister in the context of the prevailing regional situation.

Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of Army Staff and Chief of Defence Forces Field Marshal Syed Asim Munir, federal ministers and provincial chief ministers, along with relevant senior government officials, attended the meeting.

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