Islamabad: Pakistan has announced a slew of austerity measures, including plans to shut down markets and shopping centres early and asking government employees to work from home to save energy costs amid an ongoing economic crisis.
“The country is passing through a critical situation,” Defence Minister Khawaja Asif told reporters Tuesday after the federal cabinet approved the proposal. The nation cannot afford to sustain the current levels of power consumption, he added.
Starting Thursday, shopping centres will be closed at 8pm local time, while marriage halls and restaurants will be shut by 10pm. Separately, 20% of government employees have been asked to work from home, Asif said.
The plan will be implemented in consultation with provincial governments. The government estimates the austerity steps will reduce power demand by about 9,000 megawatts per day or about half of the current consumption.
The South Asian nation is struggling to pay for its oil imports and to meet energy demand as its foreign exchange reserves have dwindled to about $6.7 billion, equivalent to just over one month of imports.
Pakistan’s economic crisis deepened after the International Monetary Fund delayed its latest loan installments amid disputes over tax targets. It has also sought details on how much the nation will be spending to pay for reconstruction and rehabilitation after unprecedented floods this summer.
The floods killed more than 1,700 people, inundated third of the nation and cut the nation’s growth by half. The climate catastrophe also left about $32 billion in damages and losses to the nation’s economy.
Earlier this year, Pakistan’s government also triggered rolling blackouts and increased power costs because it could no longer secure enough fuel. The move followed other South Asian nations, including Bangladesh and Sri Lanka that announced such steps as part of energy austerity measures.
