Sindh govt announces austerity measures amid global fuel crisis

KARACHI: The Government of Sindh on Tuesday announced a series of austerity measures aimed at reducing fuel consumption and curbing government expenditure amid soaring oil prices linked to the ongoing Iran war.

The provincial steps follow a nationwide savings plan announced by Prime Minister Shehbaz Sharif a day earlier to address the global fuel crisis triggered by the US-Israel-Iran conflict.

Pakistan, like many countries, is facing supply constraints after disruptions in the Strait of Hormuz, a vital global transit route for oil shipments.

The situation intensified after Iran retaliated against US military installations in the Middle East following joint strikes by Washington and Tel Aviv, creating hurdles for major oil-producing countries in supplying fuel to international markets.

Amid the disruption, Pakistan recently raised petrol and diesel prices by around 20%, prompting federal and provincial governments to adopt energy conservation and austerity measures.

Addressing a press conference after a Sindh cabinet meeting chaired by Chief Minister Murad Ali Shah, Senior Minister Sharjeel Inam Memon said the provincial government had taken several steps to manage resources and limit fuel usage.

Under the measures, fuel consumption of government vehicles will be reduced by 50% for the next two months, while 60% of official vehicles will remain off the roads during the same period.

The minister said provincial ministers had decided to forgo their salaries and allowances for three months — April, May and June — as part of the austerity drive.

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He also announced that schools across Sindh will remain closed from March 16 to March 31, though examinations will continue according to the existing schedule.

According to the new directives, government offices will observe work-from-home on Fridays, although the day will not be treated as an official holiday.

The cabinet has also imposed a ban on the purchase of new vehicles and furniture by government departments, while refreshments in government offices will remain prohibited for two months.

In addition, all official travel by government officials will be undertaken in economy class, while the chief minister’s official aircraft will remain grounded during the austerity period.

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The government has further decided that no official ceremonies will be held in hotels, with all events restricted to government buildings, and a ban has also been imposed on official iftar dinners and other government-hosted gatherings.

Memon said discretionary security provided to certain individuals was being withdrawn and unnecessary police mobile vehicles assigned to them would be recalled.

He emphasised that the provincial government was making every effort to reduce expenditure during the ongoing economic pressures while ensuring that economic activity continues.

The minister added that the government and institutions remain united in dealing with the difficult situation and that savings generated through austerity measures would be utilised for public welfare.