Prime Minister Shehbaz Sharif on Monday unveiled several energy savings and austerity measures to prevent fuel shortages and declared he would not increase the prices of petroleum products further, seeking to pacify an agitated public while bearing the cost of rising prices. The measures, announced by the prime minister in a pre-recorded nationally televised speech, are aimed at saving fuel and providing funds to partially offset any further increases in diesel and petrol prices. The remaining gap is expected to be filled by the Finance Ministry’s Rs390 billion contingency fund.
"It will be inevitable to increase [fuel] prices in the coming days [because of the increase in global prices]but I will do my best to ensure that no further burdens are placed on the people," Shehbaz said while addressing the nation. The address came after Shehbaz chaired a meeting to finalize energy conservation and conservation measures. According to the meeting participants, Shehbaz emphasized that the civilian and military leadership had decided that there would be no further increase in the prices of petroleum products. The new decision to keep prices unchanged is contrary to an earlier decision where the Prime Minister had approved price adjustments on a weekly basis and passed on the full effect to consumers. Last Friday, the government raised petrol and diesel prices by Rs55 per litre, or 20%, signaling its determination to prevent any crisis. However, the increase in petrol prices was Rs23 per liter which was more than necessary and the government ended up earning extra revenue instead of just collecting international oil prices from domestic consumers. To minimize the need for major fuel imports and contribute to the funds needed to offset price increases, the Prime Minister’s speech unveiled a series of measures for two months. Similar measures have also been announced separately by the government of Khyber-Pakhtunkhwa. In the next two months, fuel allocated to vehicles in government departments will be reduced by 50%, while departmental expenditure will be cut by 20%, the Prime Minister said. He added that 60% of vehicles in all departments will remain off the road during this period. However, similar measures have also been announced in the past, but the Ministry of Finance’s savings committee used to issue exemption certificates and allowed the purchase of new vehicles, including for officials in the ministry. Shehbaz said the federal cabinet would not draw salary for two months, while the salary of members of parliament has also been cut by 25%. Additionally, two days’ pay for grade 20 and above officers and those earning more than Rs300,000 will be deducted and used for public relief. In addition, there will be a complete ban on the purchase of vehicles, air conditioners and other items for government offices, as well as on foreign visits by the Prime Minister, Chief Ministers, Governors, Federal and Provincial Ministers, advisers and special assistants, except where travel is unavoidable. The Prime Minister also banned all official dinners and Iftar parties and declared that seminars will be held at government places instead of hotels to save money. Shortened working week The Prime Minister said only 50% of staff will work in the public and private sectors, apart from essential services. Government offices will only open four days a week, while Friday has been declared an additional public holiday for two months, except for banks, agriculture and industrial sectors. All public and private schools will get two weeks of vacation from next week and online education will be introduced in all higher education institutions, he said. He warned hoarders and profiteers against illegal profiteering and urged the provinces to take action against them.
"Pakistan needs unity and national solidarity today more than ever before," said the prime minister.
