Pakistan announces austerity measures to conserve fuel as Gulf conflict spirals

Pakistan announced on Thursday a cut in fuel for official vehicles, bans on vehicle purchases by the state, foreign visits by officials, and official dinners, as part of a slew of austerity measures in a bid to conserve energy as fuel prices spike due to the Gulf conflict.

Pakistan is facing the prospect of gas and power shortages as the Gulf conflict disrupts LNG supplies and drives up petrol and diesel prices.

Also Read: China presses Iran to help rein in Houthis after Saudi appeal, sources say


The austerity measures, being implemented for the second time this year, also include a ban on government purchase of all durable goods except IT procurement and a switch to teleconferencing for meetings.

Pakistan had unveiled similar measures in March, closing down schools for two weeks, cutting fuel use across government and pushing office workers to work more from home in a bid to conserve fuel and cut government spending.

Also Read: Canada will decide on its own partnerships, Mark Carney says

The South Asian nation implemented a new policy starting Wednesday that offers motorcycle, rickshaw and small-car owners a subsidy of 100 rupees (36 US cents) a litre on a capped monthly quota in a bid to ease the impact of rising prices.

Attacks by the US and Israel on Iran over six months ago has led to the disruption of oil and gas exports through the Strait of Hormuz. Now, fighting between Saudi Arabia and the Iran-backed Houthis also imperils trade through the Red Sea.

($1 = 277.0500 Pakistani rupees)