Pakistan has announced a new package of austerity measures to conserve energy and reduce government spending as the Gulf conflict pushes up fuel prices and disrupts liquefied natural gas supplies.
Thursday’s measures include cuts in fuel use by official vehicles, a ban on government purchases of vehicles and other durable goods, and restrictions on foreign travel by officials and official dinners.
The government will also switch to teleconferencing for meetings, with IT procurement exempt from the ban on durable goods, according to the measures.
Pakistan is facing the prospect of gas and power shortages as disruptions to LNG supplies and higher petrol and diesel prices put pressure on energy security.
The measures are the second austerity package introduced this year. In March, the government closed schools for two weeks, cut fuel use across government and encouraged office workers to work from home.
Pakistan also introduced a subsidy on Wednesday for motorcycle, rickshaw and small-car owners, offering 100 rupees ($0.36) per litre on a capped monthly quota to ease the impact of rising fuel prices.
The latest energy pressures follow disruptions to oil and gas exports through the Strait of Hormuz after attacks by the US and Israel on Iran.
Fighting between Saudi Arabia and the Iran-backed Houthis has also raised concerns over trade through the Red Sea, adding to pressure on regional energy and supply routes.
