PM announces austerity measures to save fuel

KARACHI PM announces salary reductions for govt staff, to slash fuel use across govt sector and shift some public services online; schools to close for two weeks and office workers to work more from home

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People wait to be frisked as they arrive for Itikaf at Faisal Mosque in Islamabad on Tuesday.

(Agence France-Presse)

Pakistan's Prime Minister Shahbaz Sharif said on Monday that schools would close for two weeks and office workers would work more from home as he announced a range of measures to cut fuel use and government spending to cope with surging oil prices due to the Iran war.

Pakistan will slash fuel use across government and shift some public services online, Sharif said, as the Israeli-US war with Iran threatens energy supplies and has already pushed fuel prices in Pakistan sharply higher. Pakistan imports most of its energy.

"To stabilise the economy we have taken difficult decisions," Sharif said in a televised address to the nation, adding that the government was trying to minimise the burden on citizens although it had little control over global fuel prices.

Schools will from next week close for two weeks, while universities will shift to online classes to reduce commuting.

Government departments will face a 50% cut in fuel allowances for two months, while 60% of official vehicles — excluding buses and ambulances — will be taken off the road, Sharif said.