Pakistan announces austerity measures to conserve fuel as Middle East conflict spirals

Pakistan reintroduced austerity measures on Thursday in an effort to conserve fuel amid renewed tensions in the Middle East, setting 9pm as the time for closing markets and reducing fuel provision for official vehicles by 50 per cent for a period of three months.

The federal government announced bans ‌on vehicle purchases by the state, a cut in fuel for official vehicles, foreign visits by officials, ​and official ⁠dinners, as part of a slew of ‌austerity measures in ‌a bid to conserve energy as fuel prices spike due to the Gulf conflict.

The measures are to be implemented with immediate effect, the Cabinet Division’s notification detailing the government’s directives said.

According to the Cabinet Division's notification, businesses and commercial establishments are to close at following timings:

Shops, markets, shopping malls and bazaars, as well as departmental, grocery, general and kiryana stores are to close by 9pm

Marriage halls, marquees and all other commercial places where festive events are held are to close by 10pm

Restaurants, cafés, eateries, and food outlets, as well as standalone fruit and vegetable shops are to close by 11pm.

Takeaway and home delivery services are exempted from the restriction

Pharmacies, medical and medical supplies’ stores, medical laboratories, clinics, hospitals, standalone bakeries, standalone tandoors, standalone milk and dairy shops, fuel and CNG stations, electrical vehicle charging stations, gyms, sports facilities and sports/padel courts, IT companies and call centres are also exempted from any time restrictions.

Moreover, just a single dish should be served at all marriage-related functions or events, the notification said.

* Pakistan is facing the ‌prospect of gas and power shortages as the Gulf conflict ⁠disrupts LNG supplies and drives up petrol and diesel prices.

* The austerity measures, being implemented for the second time this year, also include a ban on government purchase of all durable goods except IT procurement and a ​switch to teleconferencing for meetings.

* Pakistan had unveiled similar ‌measures in March, closing down schools for two weeks, cutting fuel use across government and pushing office workers to ⁠work more from home in a bid to conserve fuel and cut government spending.

* The South Asian nation implemented a ​new ‌policy starting Wednesday that offers motorcycle, rickshaw and small-car ‌owners a subsidy of Rs100  (36 US cents) a litre on a capped monthly quota in a bid to ease the ‌impact of ‌rising prices.

* Attacks by the ⁠US and Israel on Iran over ‌six months ago has led to the disruption of oil and gas exports through the Strait of ⁠Hormuz. Now, fighting between Saudi Arabia ​and the Iran-backed Houthis also imperils trade through the Red Sea.

Reuters / Agencies