ISLAMABAD: Pakistan has extended its austerity measures to conserve fuel until June 13 as rising global oil prices continue to strain its economy, the government said on Monday, amid continued uncertainty in international energy markets linked to stalled United States–Iran peace talks.
The measures, originally introduced in March, were designed to reduce energy consumption and ease pressure on Pakistan’s import-dependent economy after crude prices surged over fears of supply disruptions in the Strait of Hormuz.
The South Asian country, which relies heavily on imported energy, has thrice raised petrol prices since the Middle East tensions began. The hikes amount to a 56 percent surge in prices, the second-highest in the world, according to global fuel price tracking data.
On Monday, Prime Minister Shehbaz Sharif approved an extension in austerity measures following recommendations from a government committee for monitoring and imposition of fuel conservation and other austerity measures, according to the Cabinet Secretariat.
“In continuation of Cabinet Division’s notifications of even number dated 9th and 14th March, 2026, the Prime Minister [...] has been pleased to extend the applicability of the following additional austerity measures up till 13th June, 2026, with immediate effect,” the Cabinet Secretariat said in a statement.
“Measures in the case of which no period or end date has been specified, shall remain applicable till further orders.”
The austerity plan includes a four-day work week for government offices, a 50 percent cut in fuel quotas for official vehicles, grounding of 60 percent of government transport, a ban on foreign travel for public employees, shifting of higher education classes online and establishment of an austerity fund.
The government says the restrictive measures are aimed at reducing energy consumption, lowering electricity generation costs, and shielding lower-income groups from higher fuel prices in Pakistan.
Pakistan has also limited business hours under the same plan, directing shops, markets, and malls to close by 8pm, while allowing restaurants and marriage halls to stay open till 10pm.
