The measures come as Pakistan, like many other economies, faces fuel supply disruptions following the closure of the strategically vital Strait of Hormuz, a key maritime route used for transporting a significant share of the world’s oil.
Oil-producing countries have reported difficulties in supplying fuel after Iran began retaliatory strikes on US bases in the Middle East following joint US-Israeli attacks. The disruption in supply routes has pushed Pakistan to raise petrol and diesel prices by 20 percent.
Addressing the nation, the prime minister said the region had been engulfed in conflict and emphasised that Pakistan was pursuing diplomatic efforts to help reduce tensions.
“The entire region is currently in a state of war,” he said, adding that Pakistan was engaging with international partners through diplomatic channels to help defuse the crisis.
Sharif also pointed to security challenges on the country’s western border, noting that Pakistan continued to face terrorism threats. He said the armed forces were effectively responding under the leadership of Chief of Defence Staff Asim Munir.
The prime minister condemned attacks on Iran that resulted in the assassination of Iran’s supreme leader Ali Khamenei, while also criticising retaliatory strikes that targeted friendly Gulf states.
Sharif said he had held discussions with leaders of several allied countries regarding the evolving situation and conveyed Pakistan’s support during the crisis.
He noted that the conflict had caused a sharp rise in global oil prices, with crude jumping from around $60 to more than $100 per barrel. The prime minister warned that Pakistan’s economy and daily life depend heavily on oil and gas supplies from the Gulf region.
He acknowledged that the recent increase in fuel prices was a difficult decision but said it had become unavoidable due to the global energy crisis.
“My mind told me that there was no option but to increase fuel prices, while my heart worried that it could place a burden on the poor,” he said, adding that further increases could not be ruled out but the government would try to minimise the impact on citizens.
As part of the austerity drive, the government will reduce fuel allocations for vehicles used by government departments by 50 percent for the next two months, while 60 percent of official vehicles will remain off the roads during the same period.
Members of the federal cabinet, advisers and special assistants will forgo their salaries for two months, while members of parliament will face a 25 percent salary cut. Government departments have also been directed to reduce their expenditures by 20 percent.
The government has imposed a ban on most foreign visits by ministers and officials unless they are deemed essential for national interests, with teleconferencing and online meetings encouraged instead.
Additional measures include a deduction of two days’ salary from Grade-20 and above officers earning more than Rs300,000 per month, a ban on official dinners and iftar events, and holding seminars only at government venues.
Sharif also announced that 50 percent of staff in both the public and private sectors would work from home, except those in essential services. Government offices will operate four days a week, although the decision will not apply to banks.
Schools across the country will be closed for two weeks starting at the end of the current week as part of energy conservation measures.
The prime minister also warned traders against hoarding essential goods to exploit the crisis and urged the nation to show unity and responsibility as the world faces shifting geopolitical dynamics and emerging global alliances.
