Pakistan imposes fresh austerity measures, cuts fuel use, bans vehicle purchases

Pakistan on Thursday announced a fresh set of austerity measures to conserve energy and control government spending as the Gulf conflict disrupts fuel supplies and pushes up petrol and diesel prices.

 

Under the new measures, the government will reduce fuel use for official vehicles and impose a ban on the purchase of vehicles by state departments. Foreign visits by officials and official dinners will also be restricted.

 

The measures come as Pakistan faces the possibility of gas and power shortages due to disruptions in liquefied natural gas (LNG) supplies from the Gulf region. Rising fuel prices have added to the pressure on the country’s energy supply and economy.

 

The austerity steps, being introduced for the second time this year, also include a ban on government purchases of durable goods, except for IT-related procurement. Officials have also been directed to use teleconferencing for meetings to reduce travel and other expenses.

  

Pakistan had introduced similar measures in March, when schools were closed for two weeks. The government had also cut fuel use across departments and encouraged office workers to work from home to conserve fuel and reduce spending.