Pakistan imposes harsh austerity as oil prices spike

Amid rising oil costs triggered by the Middle East conflict, Pakistan has introduced sweeping austerity measures.

Prime Minister Shehbaz Sharif announced on March 9 that schools will close for two weeks while universities and colleges shift immediately to online learning, Caliber.Az reports via foreign media.

In an effort to reduce fuel consumption, half of all public and private sector employees will work from home, and staff will receive an additional day off each week.

Crude oil prices breached $100 on March 9, the first time in nearly four years, before retreating slightly below that level. Sharif emphasised that Pakistan’s economy, transport, and agriculture sectors are heavily dependent on oil and gas imports from the Gulf.

The prime minister outlined strict steps for government staff, including halving fuel allocations for official vehicles and cutting certain salaries to reduce spending and fund public support programs. Government offices are barred from purchasing new furniture, air conditioners, or other non-essential items.

In addition, all overseas travel by Pakistani officials—including the prime minister—is suspended unless linked directly to national security needs.

By Jeyhun Aghazada