Pakistan unveils sweeping austerity measures as fuel prices soar

Dubai: Pakistan has rolled out sweeping fuel-conservation and austerity measures, including early closure of markets, deep cuts in fuel for official vehicles and restrictions on government travel, as the Middle East war sends energy costs soaring.

Under the conservation framework, shops, markets and shopping malls are to close by 9pm, while restaurants and cafés can operate until 11pm, with provincial and regional governments responsible for implementing the business restrictions in their jurisdictions, according to Dawn and Geo News.

The measures come as Pakistan faces another sharp increase in fuel prices amid disruption to global energy supplies caused by the Iran conflict and restrictions on shipping through the Strait of Hormuz.

Petrol has risen by Rs6.88 to Rs391.22 per litre, while high-speed diesel increased by Rs5.62 to Rs421.45 per litre, effective September 17.

The government has linked recent fuel-price increases to volatility in international markets. Pakistan, a major energy importer, has been particularly exposed to the surge in oil and gas costs caused by the Middle East conflict.

At a glance: Pakistan’s austerity drive

• 9pm: Shops, markets and malls close

• 10pm: Marriage halls and event venues close

• 11pm: Restaurants, cafés and eateries close

• Weddings: One-dish restriction

• Official vehicles: Fuel allocation cut by 50% for three months

• Foreign travel: Federal government trips sharply restricted

• Purchases: Curbs on government vehicles and durable goods

• Exemptions: Hospitals, pharmacies, fuel stations, IT firms, call centres and other essential services

Shops to shut by 9pm

Under the conservation measures, shops, markets, malls, bazaars, department stores, grocery stores and general retail outlets are to close by 9pm.

Marriage halls, marquees and other venues hosting festive events must close by 10pm, while only one dish can be served at marriage-related functions.

Restaurants, cafés, eateries and food outlets can remain open until 11pm. Takeaway and home-delivery services are exempt.

Essential services are also exempt from the closing restrictions, including pharmacies, hospitals, clinics, medical laboratories, standalone bakeries and tandoors, dairy shops, fuel and CNG stations and electric-vehicle charging stations.

Gyms, sports facilities, IT companies and call centres are also exempt.

The federal government has previously directed provincial administrations to enforce the business timings as part of its nationwide fuel-conservation strategy.

Official fuel slashed 50%

The government is also tightening its own spending.

Fuel allocations for official vehicles are being cut by 50 per cent for three months, while operational vehicles belonging to the armed forces, law-enforcement agencies, essential services and other specified organisations are exempt.

The government has also imposed restrictions on purchases of vehicles and durable goods, while non-essential recurring expenditure is being cut by 5 per cent for the 2026-27 fiscal year.

Foreign travel by federal officials has been restricted for three months, with limited exceptions. Where overseas representation is essential, Pakistan’s ambassadors or high commissioners are expected to represent the country where possible.

Officials permitted to undertake unavoidable trips will travel economy class.

Government-funded seminars, training programmes and conferences have also been restricted, while officials have been encouraged to use teleconferencing for meetings.

The renewed conservation push comes as Pakistan attempts to cushion ordinary consumers from the energy shock. A separate government scheme offering Rs100-per-litre relief to motorcycles, rickshaws and cars up to 800cc was rolled out nationwide from September 17.