The federal government is considering reimposing austerity measures in response to rising global oil prices and fears of a worsening economic situation triggered by escalating Iran-US tensions.
According to sources, a formal notification will be issued after consultations and final approval.
Sources said the government has begun reviewing a new round of austerity measures as concerns mount over the economic impact of increasing geopolitical tensions in the Middle East.
Officials fear that the escalation between Iran and the United States could push global oil prices higher, placing additional pressure on Pakistan's economy and public finances.
PM plans to further reduce govt spending
According to sources, Prime Minister Shehbaz Sharif is consulting with relevant stakeholders on further reducing government expenditures.
The proposed measures are aimed at limiting unnecessary spending while helping the country manage the financial impact of higher energy costs.
Sources said the new austerity measures are likely to come into effect either this week or next week, depending on the completion of consultations and the approval process.
Fresh instructions are expected to be issued to federal ministries, divisions and government institutions once the package is approved.
Relevant ministries are currently finalising the implementation mechanism for the proposed measures before a formal notification is released.
Work-from-home policy under consideration
As part of efforts to reduce energy consumption, the government is considering introducing a work-from-home policy for selected government offices.
The proposal is intended to lower electricity usage and fuel consumption while reducing operational expenses.
Sources said the government is also reviewing proposals to impose stricter restrictions on the use of official vehicles.
Another proposal under consideration is to reduce the fuel quota allocated to government departments and agencies as part of broader efforts to cut public spending.
Unnecessary official travel, expenses
The government is also considering limiting non-essential official visits, meetings and administrative expenditures.
The objective is to minimise avoidable expenses and ensure more efficient use of public resources during a period of economic uncertainty.
According to sources, the proposed austerity measures will only be implemented after receiving the necessary approvals.
A formal notification outlining the new policies is expected to be issued once the consultation process is complete.
Austerity measures already visible in markets
Sources added that austerity measures have already been implemented in markets and bazaars, reflecting broader efforts to conserve energy and manage resources.
The government believes additional spending controls will help mitigate the economic risks associated with volatile global energy markets and regional geopolitical instability.
.jpg&w=640&q=75 "Holiday announced on July 22")
.jpg&w=256&q=75 "Holiday announced on July 22")
