Government announces austerity, declares Friday additional weekly public holiday

Faced with rising fuel costs, the federal and provincial governments have introduced a series of austerity measures – from declaring an extra weekly holiday to cutting free petrol for ministers, restricting protocol vehicles and proposing subsidized fuel for students – even as global oil prices show signs of easing after recent market volatility.

Prime Minister Shehbaz Sharif chaired a high-level meeting in Islamabad today to review the implementation of measures designed to conserve energy and curb public expenditure in the face of changing global economic conditions.

After the meeting, authorities announced that Friday would be kept as an additional weekly holiday to help reduce fuel consumption and electricity demand.

Also read: OGRA dismisses reports of Rs73 petrol, Rs84 diesel hikes as ‘completely baseless’

Addressing the participants, Prime Minister Shehbaz said the government was making every effort to maintain economic stability despite challenging international circumstances.

To oversee the implementation, the government formed a special committee headed by Deputy Prime Minister and Foreign Minister Ishaq Dar to monitor progress on a daily basis and report directly to the Prime Minister.

The prime minister also directed that the impact of the austerity measures be assessed through a third-party audit to ensure transparency and evaluate their effectiveness. All ministries and departments were instructed to enforce policies that promote simplicity, cost savings and energy conservation.

To ensure the proper implementation of the savings campaign, government departments must submit photographic evidence of vehicles taken out of official use. Ministries were also asked to provide reports to the Prime Minister’s Office outlining how work-from-home arrangements were implemented.

Officials said at the meeting that federal ministries and departments would submit daily and weekly reports on energy conservation efforts and workforce management to the oversight committee.

Separately, FM Dar chaired a meeting with senior officials of the Ministry of External Affairs to review the implementation of the austerity measures announced by the Prime Minister.

According to officials, the meeting assessed the steps the ministry has taken to align its administrative and operational practices with the government’s broader efforts to ensure fiscal discipline and reduce public spending.

During the meeting, the Deputy Prime Minister emphasized the importance of prudent use of public resources and charged officials to ensure that the ministry’s activities remain in line with the government’s commitment to financial accountability.

He emphasized the adoption of efficient administrative practices and called for limiting expenditure on essential obligations. Officials were instructed to identify areas where operating costs could be optimized without affecting Pakistan’s diplomatic reach and the delivery of consular services.

FM Dar said the Ministry of External Affairs must continue to carry out its diplomatic functions effectively while contributing to the government’s wider austerity drive.

The Deputy Prime Minister reaffirmed full support for the government’s initiative and emphasized the ministry’s commitment to responsible governance, transparency and efficient use of public funds.

Punjab introduces measures to curb fuel consumption

Meanwhile, the Punjab government also introduced parallel measures to reduce fuel consumption in the provincial administration.

Chief Minister Maryam Nawaz ordered the suspension of government fuel to provincial ministers until the oil supply situation stabilises. Fuel allowances for official vehicles used by senior government officials were also cut by 50%.

Protocol convoys accompanying ministers and senior officials were also restricted. Only one vehicle would be allowed for essential security purposes.

Read: Sindh announces school closure from March 16 to 31, government staff to work from home on Fridays

Punjab also expanded telecommuting in government offices so that only essential staff could report to workplaces while others would perform tasks from home. Officials said government services would continue through digital platforms, including the province’s “Maryam Ki Dastak” initiative.

In addition, the authorities curtailed official outdoor events and postponed several public gatherings.

The provincial administration also ordered the creation of District Petroleum Monitoring Committees to monitor fuel availability and prevent hoarding or illegal distribution. The Punjab Information Technology Board was tasked with developing a digital track-and-trace system to monitor petroleum supplies across the province.

Rising fuel costs also led to proposals aimed at easing the burden on students.

Former Punjab transport minister Ibrahim Murad proposed introducing a “fuel card” program where students would receive 10 liters of subsidized petrol every month. He said the recent Rs 55 per liter increase in oil prices had significantly increased the commuting cost of students traveling to educational institutions.

Murad argued that a targeted subsidy could help students continue to attend schools and universities without putting additional financial pressure on families.

The policy moves come as global oil markets remain volatile amid escalating geopolitical tensions.

Read: KP announces two-day weekly school closure for two months amid fuel crisis

On Monday, Brent oil rose to a high of $119.50 a barrel after Iran launched new attacks on energy facilities in the Gulf. Prices later retreated sharply to around $82 a barrel as markets reacted to changing signals from Washington and Tehran.

US President Donald Trump said the conflict in the Middle East could end sooner than expected, even as demonstrations took place in Iran backing the country’s new supreme leader, Mojtaba Khamenei.

Iranian state media broadcast images of large crowds in several cities waving national flags and holding portraits of his father, Ayatollah Ali Khamenei, who was killed in an Israeli strike on the first day of the war.

The conflicting signals from political leaders sent global markets on a rollercoaster ride. Oil prices rose sharply while stock markets fell earlier in the day before reversing course after Trump’s comments and reports that sanctions on Russian energy exports may be eased.

For Pakistan, which is heavily dependent on imported fuel, such volatility has immediate economic consequences. Higher oil prices typically push up transport costs, contribute to inflation and increase pressure on public finances.