ISLAMABAD(National Times)- Prime Minister Shehbaz Sharif on Monday announced a comprehensive set of austerity and savings measures, emphasising that these steps were necessary to manage the impact of the ongoing global fuel crisis triggered by the US-Israel-Iran conflict. Addressing the nation from Islamabad, the premier warned that the escalation of regional hostilities is having a tangible economic impact on Pakistan.“The entire region is currently in a state of war,” the prime minister said, adding that Pakistan is making every effort through diplomatic channels to help resolve the crisis. He stressed that the government is closely engaging with international partners to defuse tensions and support stability in the region.
Regional tensions
The prime minister also condemned attacks on Iran, including the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei, while simultaneously denouncing retaliatory strikes on friendly Gulf nations. He said he had engaged in detailed discussions with leaders of allied countries, reinforcing Pakistan’s solidarity with them during this difficult time.
Rising oil prices
The premier explained that global oil markets have reacted sharply to the conflict. “The price of crude oil in international markets has surged from around $60 to more than $100 per barrel,” he said. He stressed that Pakistan’s daily life and economy depend heavily on oil and gas imports from the Gulf region, leaving the country particularly vulnerable to international price shocks. “The recent increase in petroleum prices was a difficult decision taken with a heavy heart,” the prime minister added. “My mind told me there was no option but to raise fuel prices, while my heart worried about the burden on the poor.” He warned that domestic petroleum prices could rise further in the coming days if global trends continue, citing the volatile international energy market as a key factor.
Austerity and remote work measures
To manage the economic strain, the government is introducing several administrative and financial measures. These include a four-day workweek for government employees and a 50 percent work-from-home arrangement for staff to reduce commuting costs and ease fuel consumption. Additionally, Members of Parliament will see a 25 percent cut in salaries, while government departments have been instructed to implement 50 percent spending reductions as part of broader efforts to control public expenditure. The prime minister described these steps as part of a wider strategy to stabilise the economy and mitigate the effects of rising fuel costs on households and businesses across Pakistan. PM Shehbaz concluded by stressing that Pakistan will continue to monitor the evolving situation, adapt policy measures, and maintain close coordination with international partners to navigate the twin challenges of regional instability and soaring global oil prices.
